Board evaluation and board charters for microfinance banks
A board is easier to assess than it looks. The questions are practical ones: does it meet often enough to govern rather than to ratify, does it receive information early enough to act on it, are its committees properly constituted and actually working, is there a real separation between the board and management, and can a decision taken two years ago still be traced through the minutes?
A board evaluation examines composition and independence, the frequency and quality of meetings, the committee structure, the flow of information from management, the handling of related-party matters and conflicts of interest, and the board's own record of following up on what it decided. It produces findings the board can be shown, not a score it can file.
A board charter then writes the answers down: the board's role and its reserved powers, what is delegated to management, how directors are appointed and how long they serve, how committees are constituted and what they may decide, meeting and quorum rules, conflict-of-interest procedures, and how the board's own performance will be reviewed.
Our firm has carried out both engagements for GOWANS Microfinance Bank — an evaluation of the board of directors, and the preparation of the bank's board charter. We are available to discuss the same work with other institutions.
A board evaluation examines composition and independence, the frequency and quality of meetings, the committee structure, the flow of information from management, the handling of related-party matters and conflicts of interest, and the board's own record of following up on what it decided. It produces findings the board can be shown, not a score it can file.
A board charter then writes the answers down: the board's role and its reserved powers, what is delegated to management, how directors are appointed and how long they serve, how committees are constituted and what they may decide, meeting and quorum rules, conflict-of-interest procedures, and how the board's own performance will be reviewed.
Our firm has carried out both engagements for GOWANS Microfinance Bank — an evaluation of the board of directors, and the preparation of the bank's board charter. We are available to discuss the same work with other institutions.
