Assessing the Prevalence of Board Performance Evaluation Practices in Malawi

Board performance evaluation is a critical tool for the improvement of the effectiveness of the entire Board because it measures the contribution that the Board makes towards the attainment of the institutions’ strategic goals and also prescribes capacity building measures directed at addressing any identified gaps. This study was meant to assess the prevalence of board performance evaluation practices in Malawi with significant policy, practical and academic implications. Data for this research was collected through a semi structured questionnaire which was administered to randomly sampled board members and senior management of Malawi Stock Exchange listed companies, private companies, statutory corporations and NGOs/CSOs. Results of the research demonstrate that many institutions in Malawi (62%) are undertaking Board performance evaluation with some (28%) not undertaking it and yet a few others (10%) not knowing if the practice has ever or is taking place in their entities. The study recommends that regulatory bodies like the Malawi Stock Exchange, the Reserve Bank of Malawi, Department of Statutory Corporations and the NGO Board and other interested stakeholders like ICAM, IIA, Malawi Law Society including all key stakeholders in the corporate governance arena should review the Code of Best Practice for Corporate Governance in Malawi, an instrument that mandates entities to undertake such practices, build capacity of various Boards on the process of undertaking an effective Board performance evaluation and enforce implementation so as to improve the effectiveness of the Boards to enable them effectively contribute to the socio-economic development of the country and in the end realization of the MW2063.
Key Words: Board, Board Performance, Evaluation, Effectiveness, MW2063, Strategic Goals.