Company directors in Asia have the tendency to invite friends to join their boards, so much so that these end up functioning like “private clubs”. Such a situation could lead to weakness in those companies, including corporate governance issues, says Stéphane Garelli, founder of the IMD World Competitiveness Centre and former managing director of the World Economic Forum. This has to stop!”Garelli says such a situation could weaken the corporate governance of a company. He says the founders of such companies could also be their CEO and board member. These questions may not only be related to corporate governance but can also touch on other areas such as succession planning.

Source: The Edge Markets January 24, 2020 08:03 UTC