As discussed earlier, the board has to shoulder a larger responsibility than the CEO, whose role is limited to being actively engaged with routine management functions. However, ‘There are many boards that overlook more than they oversee.’ This is more so in family-owned enterprises which are common in Asia and Latin America. In India, for instance, it is common to find family-owned concerns being run by promoters as their personal fiefdoms. Though their investments may be meagre, they manage the firms, holding positions of CEOs, managing directors, chairmen and menbers of the board of directors. In such a set-up, the board acts more like a rubber stamp, rather than shouldering large responsibilities. For better governance, ...

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