Strengths of the Board Composition of Genting Groups

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Another problem is family conflict. Conflict is bound to happen between directors, managers or workers at any firm, but added in family relationships, can be more difficult to solve and can result in difficult endings. This is because with the family relationships, it is hard to tell or scold them when they did somethings wrong. However, there is another example that they would tell and scold their family members when they did somethings wrong, but then the conflict would occurs.

Unstructured Governance is one of the problems too. Because of the level of trust inherent at family firms, corporate governance issues such as internal hierarchies and rules, and the ability to follow and adhere to external corporate laws, tend to be taken less seriously at family businesses. Unfortunately, this can be gravely detrimental.

One of the problems is lack of succession planning. Many family firms lack of succession plans, because the leader is feeling embarrassed in choosing among ideas provided by the family members and the management teams. When the leader picked the idea from family members, the managers will think that the leader carries pole of his or her family members. Therefore, the leader will end up by combining the ideas from both which results in worsen plans.

Mostly Male in the Board

A minor weakness of the Genting Group is mostly male in the board which leads to overly blunt and direct, insensitive to audiences and employees reactions, and over confident in own opinion. ‘The companies with one or more women on the board have delivered higher average returns on equity, lower gearing, better average growth and higher price/book value multiples over the last six years’ (The Credit Suisse Research Institute August 2012). By adding women into the business, different perspectives will be bringing into the boardroom discussions, and can create dynamic in the boardroom discussions.

Conclusion

In a nutshell, the weaknesses of the Genting Board are not difficult to eliminate or solve. Furthermore, there are some weaknesses in the internal control were identified for the year under review but these are not significant and have not materially impacted the business or operations of the Genting Group. Nevertheless, measures have been or are being taken to address these weaknesses.

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