Does Your Business Need an Effective Chairman?
Here are ten alarm signals which show that you need a chair:
- Is the Chairman also the CEO or MD? (Or is there no Chairman!)
- Is the gearing over 100%?
- Has the gearing increased significantly since last year?
- Are short term borrowings larger than long term borrowings?
- Has turnover grown by more than 50% per annum over the last five years?
- Did the turnover more than double in the last year or in the previous year?
- Has the company recently made, or is planning to make a major move of premises?
- Have any directors resigned?
- Are the reports and accounts lavishly produced?
- Is the company in a cyclical industry?