Effective Boards of Directors: A New Approach

  • Igor Belikov


The goal of this study is essentially twofold. First, it seeks to improve the efficiency of management in Russian companies
through a revitalisation of perspectives on the makeup and activity of boards of directors. Second, it seeks to develop a
motivation among controlling shareholders to strengthen the actual role of such boards in managing companies. This
combined approach is intended to be applicable to both public and private companies.
The objective of this study is to search for ways to refocus on standard recommendations for international best practice
regarding the work of boards of directors. These recommendations should consider best practices in terms of general
company control and supervision, the in-depth study of key business processes, management innovations, technologies,
and tools to promote new management approaches. A feature of this investigation will be the identification of ideas to
ensure the best paths towards overcoming psychological barriers that impede the adoption of innovative and novel ideas
by management.
This article provides a comparative analysis of the classic Anglo-US model of corporate governance (which features the
role of boards of directors as the body exercising control and supervision over the company’s activities and its management), with the Russian model. The Russian model is characterised by a structure which nominally replicates the
practice of developed countries, whereby the real power rests with the controlling shareholders and management, with
the boards playing a secondary role by approving the plans of the company activities and their results.
Given this situation, the boards of directors of Russian companies should prove their capability to contribute to the
creation of economic value. Examples of essential management areas in which boards of directors should implement the
function of management development are: strategic planning, creating and improving competitiveness, building up and
developing the company’s human capital, risk management, and internal control. This article suggests efficient practices
and tools which can be used by a board of directors for management development.


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Как цитировать
BelikovI. (2019) «Effective Boards of Directors: A New Approach », Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438, 13(1), сс. 120-130. doi: 10.17323/j.jcfr.2073-0438.13.1.2019.120-130.