December 07, 2020
Boards are increasingly seeking out representation from specific stakeholder groups, but for many people, being appointed to a representative board is their first board experience. It is therefore critical that newly appointed directors form a fundamental understanding of their fiduciary duties through a strong director-orientation-program.
The November/December edition of the Director Journal’s column Directors’ Dilemma addresses this subject by posing the question: “I’ve been asked to join a board and represent my stakeholder group. What should I know before I agree?” The article addresses this question by drawing on advice from industry experts.
Chair of Torys’ Corporate practice Cornell Wright told Directors’ Dilemma that the duties of all directors are usually prescribed by a statute that calls for them to act in the best interest of the business.
PODCAST: Listen to this episode of Torys Business Brief to learn how boards and management are working together to help their organizations emerge from the pandemic.
“Where that is the case, the fact that directors are chosen to be on the board because of their affiliation with a particular constituency does not alter their duty to act in the best interests of the organization as a whole” Cornell said.
You can read the full column here.
Learn more about our Board Advisory and Governance team and read some of their insights, including this Q3 Torys Quarterly piece “The post-pandemic world: key considerations for business leaders” on the practice page.