The article “Proactive, Reactive and Inactive Boards” discusses recent research led by Dr Filipe Morais on Board Performance Review (BPR) practice in AIM-listed firms and briefly identifies 5 core principles which now form part of the Quoted Companies Alliance Guidance on Board Performance Reviews. The five principles, help boards implement the QCA Code of Governance Principle 7 (now utilised by a vast majority of AIM companies as the code under which they report). The BPR principles are:
Principle 1: Ensure the chair leads the review but is not exempt from it
Principle 2: Conduct performance reviews that are dynamic and context sensitive
Principle 3: Consider a wider set of stakeholders and avoid inwardly-looking performance reviews
Principle 4: Focus on value added activities and on continuous improvement
Principle 5: Ensure the process and outcomes are transparent and well-communicated.
The article has been originally published by Governance, No. 323.
