Dealing with shareholders
British chairs usually try to achieve balance, equality and fairness. Often no differences are made between majority and minority shareholders.
Italian chairs see as their top priority establishing a good relationship with shareholders. They regard contact with shareholders as crucial, with timely follow-ups after board meetings.
For Turkish board chairs, it is vital to keep large shareholders informed about decisions. They say that these majority shareholders simply must have the feeling of being in control. At the same time, they must pay some attention to minority shareholders as well.
In Denmark, it is important for chairs to follow the expectations of key shareholders. One Danish chair even runs long, in-depth interviews with key shareholders. This enables him to learn more about their priorities and understand what, in fact, it is that they want.
In Russia, chairs need to remember who nominated them. Here equality amongst shareholders is not such an important issue: simply it is the most powerful shareholders who matter most. Informal relationships are crucial especially in state-owned companies, where the chair has less scope for imposing his own will and is regarded by shareholders as an equal partner.
Guide to meetings with board of directors
- Provide enough time for preparation
- Prioritise topics well before the meeting
- Encourage everyone to contribute and do not allow anyone to dominate
- Treat all directors equally and acknowledge their expertise
- Never forget silent directors
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