Directors concerned about distraction from strategic focus

ASIC News
May 8, 2013
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King & Wood Mallesons' third edition of its annual corporate governance report - Directions 2013 - shows that Australian directors are facing an identity crisis due to a widening expectation gap as to the proper role of directors.

Directors concerned about distraction from strategic focus

 

King & Wood Mallesons’ third edition of its annual corporate governance report – Directions 2013 – shows that Australian directors are facing an identity crisis due to a widening expectation gap as to the proper role of directors. The report found that legal and regulatory burdens are feeding the expectation gap between what directors think they should do, and what other stakeholders think they should do.

 

The Report indicates that boards and directors are finding it increasingly difficult to focus on strategic business issues and productivity when they are “hemmed in” by governance issues and red tape, demonstrated by the top 3 issues nominated by survey respondents as concerning them in fulfilling their role as a director:

  1. increasing compliance burdens;
  2. inability to devote sufficient time to providing strategic direction and guidance; and
  3. excessive bureaucracy and regulation.
Mertons specialises in providing guidance and support on governance issues allowing directors to maintain a balance between their corporate governance obligations and a focus on strategic business decisions.