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Recent events inspire this article, where a technical advisory services firm was assigned to assist in resolving issues related to distressed assets. It was noted throughout these appointments, that the majority of renewable energy asset boards are commercially and legally very knowledgeable, but lacking in technical experience.
By Chanda Nxumalo, Managing Director, Harmattan Renewables
The article first appeared in ESI Africa Issue 4-2020.Read the full digimag or subscribe to receive a print copy.
What is the purpose of a board for a renewable energy plant? To answer this question, let’s first unpack boards in general. According to the Institute of Directors’ Standard for the Board, its fundamental purpose “is to ensure the company’s prosperity by collectively directing the company’s affairs, while meeting the appropriate interests of its shareholders and relevant stakeholders”.
Board members should be required to be sufficiently knowledgeable about the workings of the company to be answerable for its actions, yet able to stand back from the day-to-day management of the company and retain an objective, longer-term view.
The major responsibilities of the board of directors include a strategic function in providing the vision, mission and goals of …
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