An Expert Evaluated Nomination Process for the Board of Directors in South Africa’s State-Owned Companies
摘要
The primary challenge facing most of the South Africa’s State-Owned Companies (SOCs) is the implementation of an ineffective nomination process used to appoint directors, which often results in the appointment of incompetent executives and boards of directors. As a result, this chapter provides an effective process that can be used by SOCs when appointing directors. This research paper aims to identify an effective nomination process for non-executive directors overseeing SOCs. This study conducted a systematic literature review as well as a two-round Delphi process where experts provided their input on the most effective nomination process for non-executive directors serving on SOCs. The research study has identified the most effective nomination process that can be used when appointing non-executive directors in SOC. The research study’s findings suggest an effective nomination process that SOCs can use to select non-executive directors for SOCs. This study contributes to the scant research on corporate governance in SOC, especially on research focusing on the nomination process of non-executive directors, as the majority of research has been concentrated on listed companies.