CHAPTER 09 Governance in a Nascent Industry: Lessons from Canada’s “Green Rush”
Our Take: Strong Governance, Oversight and Transparency Are Keys to Success
1. ESTABLISH AN INDEPENDENT AND EXPERIENCED BOARD OF DIRECTORS – Promote a majority-independent board with relevant industry and public company experience, and consider establishing an advisory board to complement director experience where appropriate (such as to advise on complex issues).
While it is impossible to predict with any degree of certainty which new industries will emerge in the decade ahead, history has taught us that change and disruption are inevitable, and the lessons learned from Canada’s Green Rush provide instructive guidance for issuers operating in emerging growth industries. Junior issuers and issuers in nascent industries should be proactive and prioritize establishing robust corporate governance practices from inception, rather than in response to issues as they emerge. In our view, the following are three core areas in which these issuers can better position themselves for future success.
– Appoint an independent board chair or an independent lead director.
– Adopt and adhere to a robust written board mandate, governance guidelines and a code of business conduct and ethics to ensure ethical conduct and maintain integrity throughout the organization.
137
Davies | dwpv.com
Powered by FlippingBook