A strong board of directors is the cornerstone of many companies and is the group charged with the oversight of the corporation on behalf of the shareholders. In general, a Board is responsible for hiring, evaluating, and compensating management. They also assume oversight of corporate strategy as well as financial reporting, capital structure, and compliance. An effective relationship between the Board and management can have a very positive impact on the company.
Joining a board of directors can potentially be overwhelming for anyone who is not adequately prepared. Beyond being expected to help make key decisions in the oversight of strategy, capital structure and financial reporting, and management, board members play complex, important roles. An effective director onboarding or orientation process can help make a director and the entire board more effective.
Over the past few decades, the role of the board of directors has come under fire at various times due to corporate scandals ranging from Enron to WorldCom and tragedies such as the recent Boeing crashes. The Sarbanes-Oxley Act of 2002 was put into place to make corporations more accountable, and directors must be accountable, too.
At Current Capital Partners, we pride ourselves on a full range of services to help clients achieve their strategic and financial objectives. We serve clients with mergers and acquisitions advisory services, corporate management services, and private equity investing. The Securities Exchange Act of 1934 provided the Securities and Exchange Commission with the authority to prescribe the frequency and content of periodic financial reports. Quarterly reporting has been required for publicly traded companies in the United States since 1970 when the SEC adopted Form 10-Q. However, quarterly earnings guidance by public companies is provided voluntarily.
Many occupations require licenses to prove competency, including accountants, investment professionals, physicians, private investigators and security guards. While licensees are not necessarily excellent at what they do, a license does guarantee that a licensee has fulfilled the requirements for a given role determined by a reputable authority.
For most publicly traded companies, the Annual Report used to be a detailed document printed on high-quality paper with first-class graphics and photographs describing a company’s business and financial results. Today, it is often just a few pages attached to the Form 10-K, the yearly report required by the Securities and Exchange Commission for companies that meet certain requirements. The in-person Annual Meeting should be streamlined, too – into a partially or even entirely electronic meeting.
Choosing a new CEO is rarely an easy or straightforward task. During periods of change, board members tend to reach for certainties. They want to know that the candidate they choose has the experience and charisma needed to chart a profitable course for the business, create an effective company structure, and instill a positive culture.
At Current Capital, we pride ourselves on providing, among other services, high-quality expert witness services in corporate litigation. Drawing upon decades as investment bankers, corporate directors, private equity investors, and operating executives, we bring extensive, practical knowledge and significant experience filling reports and providing testimony at deposition and trial. We serve as expert witnesses primarily in the areas of mergers and acquisitions, financings, private equity, restructurings, governance, and valuation.
The concept of an autocratic leader has been popularized by pop culture and enforced with high-rise office suites and no-nonsense, suit-clad CEOs. While the offices and suits remain to some extent, the approach of many business leaders has evolved into one that is more innovative.
College is an investment. In fact, it is typically the largest investment that a family makes after its’ home. This should come as no surprise to the nearly 67 million individuals in the United States that hold some form of college degree. For many, the path of higher education is fraught with staggering student loan debt and the assurance, spoken or otherwise, that something better lies ahead.