Board Room Effectiveness-An Empirical Study of Midhani

Good corporate governance would provide the basis for sound commercial decision making as an integral part to successful and sustainable corporate performance. The effectiveness of Board drives a company's future success. For Boards' effectiveness directors should be able to perform their role and responsibilities aptly and should exercise objective and independent judgment. The Board size is also one of the determinants of Board's effectiveness. The Board size should be large enough to secure sufficient expertise and at the same time the size should not be too large as to render the productive discussion impossible. A clear definition of the roles and the division of responsibilities between the Board and the management is necessary to enable the Board to effectively perform its role. This article focused on Board effectiveness-An empirical study of Midhani. The board strength of Midhani is adequate to the nature and size of operations for its effective functioning. Independent directors were independent in decisions. The Board identified its risks and concerns and made strategic planning to overcome them. Midhani has achieved an impressive compounded annual growth rate (CAGR) of about 15 percent in sales over the past 10 years. Operational efficiency of the Board of Midhani appers to be effective.