As part of Efficienarta’s methods for helping organisations improve their processes, short Corporate Governance “diagnostics” are offered to help target business improvement projects on areas where the most value can be added to overall Corporate Governance. Diagnostics have identified specific delegation requirements such as a requirement for the Board to be advised of the movement of cash between group companies (with supporting cash flow forecasts)
The latter became critical to enabling the Directors of a Subsidiary to honour their obligations as a Parent Company experienced difficulties. Does your enterprise have clear delegations to management in place and information flows to provide Directors with assurance that delegated actions are performed appropriately? Does your Board receive adequate, timely, information to understand forecast cash flows and potential risks?