On the 25 October 2016, four people tragically died in an accident on the Thunder River Rapids Ride (TRRR) at the Dreamworld Theme Park (Dreamworld). The Queensland Coroner’s Court undertook an inquest to review the circumstances and cause of the fatalities, with the final report handed down in February 2020.
It would be a foolhardy board that would incentivise the company secretary by linking bonuses to matters such as financial performance as this could act as a significant deterrent to bringing matters of concern to the board’s attention.
The highest concern at a board level is how to fulfil the fundamental legal ‘duty of care and diligence’ that rests on school board members.
As the (virtual) ink dries on this (virtual) paper, there is shared Australian community outrage at the excessive, extensive and seemingly endemic bad conduct by employees of the major banks and finance houses. However, whilst loss of community confidence in institutions was once seen as the domain of large corporations, loss of community confidence in not-for-profit organisations and institutions is at an all-time high in Australia.
Poorly managed conflicts of interest in the boardroom can cast long shadows. They can inflict lasting damage on the dynamic and operation of the board. For as long as boards are made up of people they are likely to continue to be one of the most common sources of boardroom tension and yet are still amongst the least well understood.
When it comes to many such decisions confronting boards today, too often the board feels at sea. Too much technical information and too little familiarity around the board table with the concepts concerned can result in the board not only failing to add value but instead subtracting value.
You may be amongst the many company directors mired in dozens, hundreds (perhaps thousands depending on the size and complexity of the company) of pages associated with the – always festive – end of financial year sign‑off season.
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