Good Practice

Arming Directors with Skills for Effective Management of Board Disputes

April 14, 2013

April 2013 - Boards will inevitably confront disputes involving corporate governance issues that they often are ill-equipped to resolve. Yet few directors see the need to learn about alternative dispute resolution (ADR) approaches - until they end up with a paralyzed and ineffective board or costly, protracted, and destructive litigation. For the enterprising corporate governance capacity-building organization, there is a market for helping directors acquire necessary skills and knowledge to manage intense deliberations and conflict.

IFC, in collaboration with the Centre for Effective Dispute Resolution (CEDR, based in London, United Kingdom) supports the Corporate Governance Dispute Resolution Practice Group, which includes director training organizations, ADR institutions, individual practitioners, and IFC staff. The following lessons learned are based on experiences of the Brazilian Institute of Corporate Governance (IBGC), a pioneer institution in introducing dispute-resolution skills into director-training programs, and other practice group members.



Related Materials:

Resolving Corporate Governance Disputes, Program web page

When Grandpa is Also the CEO - Resolving Differences in Family-Owned Businesses, Private Sector Opinion 28 by Barney Jordaan

Toolkit 4: Resolving Corporate Governance Disputes

Mediating Corporate Governance Conflicts and Disputes, Focus 4 by Eric M. Runesson and Marie-Laurence Guy