Enhancing Board Effectiveness: Structured Board Advisory Processes in Practice

In today’s volatile business environment, listed companies face rising pressure from regulators, shareholders, and institutional investors to elevate board performance. Morrison Consultants have experience of involving in the board advisory processes, so it more likely to appoint us to strengthen governance, transparency, and decision-making at the highest level.

Further to the case study highlighting the contributions of Mr. Elango Subramanian as an Independent Non-Executive Director (INED), we now shift the focus to how boards can improve such effectiveness through structured advisory processes.

Why Structure Matters in Board Advisory?

Appointing an INED is only the first step. Without clear mandates, defined workflows, and access to external expertise, even seasoned directors may struggle to deliver real value. A structured advisory framework ensures:

• Clear segregation of executive and non-executive oversight

• Consistent alignment with regulatory expectations such as SGX Listing Manual and Code of Corporate Governance

• Accountability across committees, shareholders, and management

Building an Effective Board Advisory Framework

1. Define Scope and Mandate Clearly: Each board committee, including Audit, Risk, Nomination, or Remuneration, must have a defined charter and KPIs. Clarity of scope prevents overlap and empowers directors to act independently.

2. Appoint the Right Mix of Advisors: Composition is critical as INED must bring industry relevance, governance experience, and independence. 

3. Facilitate Seamless Management-Board Communication: CEO and CFO should maintain the structured reporting lines to board committees. Whether it’s audit findings or succession planning, advisory feedback loops must be regular, documented, and acted upon.

When to Seek Independent Professional Advice

Directors often face situations requiring external insights in terms of legal, tax, valuation, or restructuring expertise. Obviously, INED should support the management in:

• Reviewing internal control breakdowns

• Conducting valuation fairness opinions during M&A

• Supporting whistleblower investigations or tax audits

By outsourcing technical areas to trusted advisors, boards maintain objectivity while reducing risk exposure.

Measuring the Effectiveness of Board Advisory

True board effectiveness is more than just attending meetings. Metrics should include:

• Timely closure of audit or compliance gaps

• Reduction in related-party risks

• Improved board reporting transparency

• Evidence of challenge and oversight during strategic decisions

It’s Time to Strengthen Your Boardroom

Whether you are a CEO preparing for board renewal, facing institutional investor pressure, or building committees from scratch, structure is everything. Strong governance is a competitive advantage in capital markets.

Let Morrison Consultants guide your next board transformation.

At Morrison Consultants, we provide comprehensive corporate advisory services to support businesses at every stage of their journey. From expert guidance on company incorporation to handling complex tax advisory matters, our team ensures that your business operations run smoothly and efficiently.

Contact us today for a confidential discussion.