Stonehurst Mountain Estate
EFFECTIVE DIRECTORS
AND TRUSTEES
Most companies and HOAs strive to appoint a board of directors that will be competent and
effective in providing leadership and good governance but, in my opinion, vested interests
and limi ted stakeholder perspectives often reduce the long-term effectiveness of their efforts.
Directors are meant to provide strategic direction; make
Maturity Level
major decisions; exercise oversight and ensure good
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governance (statutory requirements, company constitution This person has no or little experience, tends to be passive, without
and fiduciary duties) and put in place policies while acting views on most issues, and often volunteered to serve as director
honestly and exercising reasonable care and skill. because of ‘the barking dogs and speeding on the estate’.
A constructive approach to appointing effective directors is Maturity Level
to consider their ‘maturity’ in the context of the vision, goals
and culture of the company.
2
This person joined the board to promote and protect their own
The maturity of a director can be seen as consisting of two personal interests on the estate. They plan to start construction
components: on their property, so they join the board to try to influence matters
• • The technical capacity (qualifications and experience) in their favour (like building rules and restrictions). They have
to perform the role. This applies particularly where strong opinions, always favouring their personal interests, and
directors are expected to chair portfolio subcommittees little interest in estate issues affecting others.
of the board. For example, it is best to appoint a
director with financial management qualifications and/
or related experience to chair your finance committee.
• • Maturity of the perspective they hold about
stakeholders.
Maturity Level
3
This home owner understands that there are a number of other
home owners with similar interests or issues to theirs so they
Technical capacity is self-evident, but stakeholder perspective claim to represent other members. For example, they could be dog
is more subtle, interesting and difficult to measure. One way owners who object to the number of dogs permitted or the barking
of describing stakeholder perspective is to see the stages of restrictions. Or perhaps they own a small property, and now request
awareness as a continuum from ‘no idea’ to transformational to pay a lower levy, claiming to represent this class of owner.
leadership.
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