BOARD MEMBERS/DIRECTORS OF STATE OWNED ENTITIES – FIDUCIARY RESPONSIBILITIES OUT BY THE DOORrrrr…..


Board Members and/or Directors how-so-ever they may call themselves nowadays are required to make important decisions that is normally based on the information presented to the Board.

It is necessary for Board Members to have the basic knowledge & understanding of the various legislation and regulations affecting their fiduciary responsibilities and accountabilities to their stakeholders, government and the nation as a whole. WOW what a BIG….. TALL ORDER. Not so if you have the welfare of your constituencies at heart, you will ensure, before you put yourself forward to be nominated/appointed, that you have clarity on the responsibilities and accountabilities in your important role as a member of a Public Board/ Entity of State.

Ask yourself whether you have any conflict of interest that could affect your discretion in any matters that may involve you as a person persona. How are you going to clear yourself in any matters that are presented to the Board where it may be in conflict with that fiduciary duties. The way in which Boards are appointed are hard to believe that it is in line with those fiduciary responsibilities.

It so many times present itself to Board Members where there are issues that are discussed that are not in line with the powers of a Board. The Boards seldom ask whether matters under consideration are appropriate for Board attention, and very little consideration is given where decisions are taken that are not in line with the strategic intent, mission and purpose of the entity.

Some Board Members seldom read nor familiarise themselves with information submitted to them for perusal in order to take an informed decision on so many important matters. Another point raised is whether sufficient time was given prior to receiving minutes or information in order to give consideration to matters that may be presented at Board Meetings.

Have the Board Members given due consideration to its stakeholders before haphazzard decisions are taken.

Board Members need to realise that any decisions taken must be rational and within their legal rights and within reason and that the best interest of the organisation was served.

I must once more emphasise that SETA’s are not the only entities or agencies that are referred to, given all the legislation, the Constitution and the various regulations that apply to its functioning, are in most instances in place, government responsibilities and government agencies are also in place, however appointment of the necessary skilled and competent Board Members remain a question of debate, and therefore one have very mixed views and certainly concerns raised on the proper strategic leadership and management functioning over important sectors of our democratic development and certainly over educating and developing the nation.

We tend to focus on operational issues when the strategic leadership are not focused, nor are they in place. Many of the Board Members are disfunctional as they have never really served on strategic levels of leadership and management and it is a case of “the blind leading the blind”. The Minister need to take over the responsibility and accountability in the appointment of competent and “qualified” Board Members as this remain an important reason why SETA’s become disfunctional. Read some of the Annual Reports of SETA’s and then understand what I mean by disfunctional.

ANY SUGGESTIONS ! ??????

Share on Social Media

Leave a comment