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IoDSA warns: Board consensus is vital for executive appointments

by , 17 July 2014
The SABC is making headlines once again for all the wrong reasons.

Earlier this week, we reported that the SABC's chairwoman allegedly lied to Parliament about her qualifications.

Another scandal that's making the rounds about the broadcaster is the irregular appointment of Hlaudi Motsoeneng as chief operating officer of the SABC.

The scandal has prompted the Institute of Directors in Southern Africa (IoDSA) to send a stern warning to companies about executive appointments.

Read on to find out why the IoDSA believes board consensus is vital for executive appointments.

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Here's why board consensus is vital for executive appointment

According to the IoDSA, Motsoeneng's recent appointment highlights some of the governance issues faced by public sector boards.

Senior Governance Specialist at the IoDSA, Parmi Natesan, explains that news reports indicate that when it came to making the appointment permanent, the SABC board was split down the middle. Five of the board members present didn't support the decision.

Natesan says in a statement: 'Whatever the facts are, it's worth noting that when a senior appointment like this is made, the board's decision should, wherever possible, be based on a consensus, not a majority vote.'

The reasons?

According to Natesan, 'if an executive doesn't enjoy the support of the full board, it's unlikely that a good working relationship can be established.'

She adds, 'the board as a whole needs to feel confident the company is in the right hands, and the executives need to know they have broad support from the board.'

Well there you have it: Make sure there's board consensus when it comes to executive appointments in your company. This will go a long way in ensuring your company meets its goals and you won't find yourself in the position the SABC finds itself in.

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