Corporations have been urged to move away from the appointment of Boards of Directors based on their prominence or popularity but rather on the skills and competencies they possess for better and sustainable management of the businesses.
This is because the corporate and generally the governance terrain is changing and the non-executive directors who are characteristically not paid, are increasingly bearing responsibility for the actions of the organisations they lead. This is one of the major focuses of the third Annual LEAD Convention 2024 organised by the League of East African Directors (LEAD), under the theme, “Boards of the Future: Fostering Resilience in an Uncertain World”.
Pheona Nabasa Wall, the Executive Director at LEAD, says that governance issues like misappropriation and corruption are sometimes not because of intention to commit an offense, but out of the lack of skill or preparation for a task.
She says that the theme was chosen because there have been changes in the interests of regulators and the public as well as other stakeholders like capital providers, and some of these became even more necessary after the COVID-19 pandemic.
These include the evolving technology and its relevance, issues of ESG (Environment, Social and Governance), the reporting standards, and other regulations. Now, LEAD is leading the effort to ensure there is a large pool of skilled personnel who can take on the role of a perfect Board Member in today’s and the future environment, according to Wall.
The conference will therefore aim to give the general public, the private and public leaders in particular, tips on how to ensure good governance, detect and determine shortcomings, and also demand accountability. It comes at a time when the country is focusing attention on the national politicians including ministers and members of parliament and questioning their accountability, transparency, and commitment to good governance in light of several scandals being unveiled.
Anne Marie Mwaka, the Business Development Head at aBi Finance Ltd, a company involved in the training of the financial sector operators in ESG issues, says it is important to also empower those in positions of responsibility on what good governance is. She says corruption is also everywhere but that it is wrong for one to assume that it cannot be fought, an attitude that has made it thrive.
Jimmy Serugo, a Board Member for Amani Partners and the Founder of LEAD said the organisation also offers training to responsible Board Members or non-executive directors, but also directors organisations in need on how to identify good directors. These also include ESG training and calls on organisations that need such capacity building and qualified persons to be on the boards, to approach LEAD.
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