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Where Small Business Hits The Big Time: Good Governance Is More Affordable Than Ever, Graeme Cocks

Graeme Cocks

Small and mid-size firms more often than not fill board seats with executive directors, mostly representing founders and operators of the business. While we observe a clear trend towards the addition of independent directors, the perceptions of cost and lack of contribution appear to be hurdles for smaller business when it comes to the strengthening of their boards. Based on four consecutive annual reviews of governance in NZ, with a special emphasis on SMEs, we suggest that shareholders and senior managers of SMEs are beginning to understand that external directors do add value - and are a lot less expensive …