Desktop version

Home arrow Economics

  • Increase font
  • Decrease font

<<   CONTENTS   >>

Role of external evaluators

Where reviews are conducted or co-ordinated by the board external facilitators is not un-common. External advisers rather than acting like an evaluator generally assume the role of facilitating the discussions on board performance by the use of various interview and questionnaire techniques. Many jurisdictions report a widespread use of external facilitators, but in most cases this is a decision left to the board rather than mandated by the ownership function. In Finland and Sweden, for example, boards are free to choose the method of evaluation used as long as it does not deviate much from best business practices. As noted above, Chile outsources the core work of the review to recognised Corporate Governance Centres that have experience in conducting such reviews.

Good practice: The use of external facilitators can be useful to structure the discussion of board performance.

In some cases, the reviews are conducted with the participation of the external auditors or the state audit authority. In the Czech Republic, self-reviews by the board and augmented by external reviews, where auditors are engaged to conduct reviews of Supervisory Board performance on an ad hoc basis.

<<   CONTENTS   >>

Related topics