Assessing board effectiveness
In “Board audits: Myth, miracle, or mirage”, published in the Financial Express on 18 September 2026, written by Mr. Srinath Sridharan examines whether annual evaluations lead to better board performance. He argues that assessments should examine competence, capability, crisis preparedness and compliance in the context of the company, using evidence from board papers, discussions and consequential decisions.
The article considers how relationships within the board can discourage challenge and how an assessor’s existing advisory or recruitment connections may affect the credibility of a review. Sridharan also questions the delegation of the exercise to management or procurement, arguing that the chair or nomination and remuneration committee should take responsibility for it.
His central concern is the board’s response when findings relate to an individual director’s preparation, contribution or suitability for the company’s next phase. He argues for clear responsibility, an agreed response and subsequent review of each material finding.
