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Board size - Coggle Diagram
Board size
Ability of the board to hold productive, constructive discussions and make prompt rational decisions
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Research on optimal team numbers seems to suggest somewhere between 5-12 members is the optimial size
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Some people may be less likely to contribute to their full capabilities feeling that someone else will make the contribution
More viewpoints also have to be dealt with and this can lead to ineffective decision making as too many compromises are made
According to a study, companies with fewer board members reap considerably greater rewards for their investors
There is more effective oversight of management by smaller boards,
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Previous versions of the Code used to include a supporting principle that stated that the Board should be of sufficient size that the requirements of the business can be met and that changes to the boards composition and that of its committees can be managed without undue disruption and should not be so large as to be unqieldy
Varies depending on the size of the compay, the complexity of the business and the industry or sector in which it operates
Unless a company's articles specify a minimum or maximum number of directors, it is left to the board itself to decide how big it should be
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The average for the UK is very similar to the average in most other developed countries, including the US although the average in both Germany and France is closer to 14, partly because of their worker participation rules
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