What’s the job of a company chair? South Africa's rules need fixing

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OPINION | What’s the job of a company chair? South Africa's rules need fixing

It is crucial for chairs to fulfil their roles effectively. A failure to do so may result in an ineffective board and a poorly performing company. South Africa's regulations have critical shortcomings that don't help, saysHistorically, the chair of the board of directors filled a procedural and ceremonial role. This was a low bar focusing on the chair’s role in meetings.

Today the chair is seen as vital for effective corporate governance. They are required to lead the board in fulfilling its governance duties and responsibilities. In fact, the chair was considered by a It is crucial for chairs to fulfil their roles effectively. A failure to do so may result in an ineffective board and a poorly performing company.

But appointing an independent non-executive director as the chair isn’t mandatory for companies that aren’t listed on the. That means that the chair of unlisted companies does not need to be a director. This goes against the King IV Report’s recommendation.No professional qualifications are required for the role even though it’s demanding and requires a complex set of skills.

 

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