Reading The Directors’ Profile
Published by slang March 23rd, 2007 in ArticlesAs mentioned that the annual report is quite a thick document. However, when some of us glance at the Directors’ profile, normally it is out of curosity or are merely looking at the smartly-dressed directors’ photograph.
So what do you think you might get from reading the details of the Directors’ Profile?
Actually, we can derive useful information in relation to:
- the competency & specific work experience relating to individual director to see how ” useful/suitable” they are in relation to the company’s business;
- whether the management team is overwhelmingly a family controlled company. You can actually see such words/terms like Mr ABC or Mrs DCE is the so & so (spouse/brother/sister/relative) of the chairman/managing director. You might not surprise to note that the wife of the managing director whose previous work experience is say Accounts Assistant is appointed as Executive director of the company!;
- how politically connected is the company;
- certain prominent characters are on board which might enhance the image of the company in terms of corporate governance/transparency/integrity/general management of the company. This can indirectly boost the market value of the company’s share as this lend confidence to the public/investors.
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