Succession of boards of directors of public companies: Bank of Russia recommendations
The Bank of Russia recommends that public companies organise their board of directors rotation process so that it was consistent and gradual, providing for a scrupulous and proactive preparation for the selection of potential candidates.
Public companies and other organisations interested in implementing the best corporate governance practices should plan and provide for ensuring succession in their internal documents.
Planning the succession of the board of directors will help, on the one hand, ensure the necessary general competence and continuity of the strategic management process and, on the other hand, take into account the needs of the company in timely rotation of the board of directors, inclusion of new members, whose experience and skills will improve the quality of the board of directors' operation.
A balanced composition of the board of directors will contribute to the improvement of the quality of corporate governance and the company's performance.