Alarm Signals

find an effective chairman

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?