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Strategic Financial Management for growing companies
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axiom-e - Strategic Financial Management for growing companies via part-time Finance Directors

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Non-Executive Directors

Because we operate as portfolio Finance Directors (FDs) - or sometimes Non-Executive Directors - our role at Board Meetings is in large measure that of a Non-Executive Director. It is often during Board Meetings that the added-value contribution of an axiom-e director is highlighted.

As the CIMA report Non-Executive Directors - their value to management says:

The non-executive director in a smaller company can add enormous value. An experienced independent voice can help a small or growing company to avoid pitfalls and to make better decisions that enable that company to prosper and succeed. The non-executive director should be viewed as a sensible investment decision.

During their growth smaller companies need sound, independent business advice. Non-executive directors are well placed to provide this. As the companies develop and become more relevant to the 'public interest', the guardianship role of non-executive directors becomes more relevant.

The primary added value of non-executives to a smaller company will initially be business expertise and advice. As the company grows, it will also benefit from more specific support on, for example, finance, marketing and research. Financially expert non-executive directors have a contribution to make in helping smaller companies avoid potential over-trading. They can ensure that they receive adequate and timely information both to run their business and to meet legal requirements.

The role of the non-executive director in growing smaller companies can include:
  • Business advice based on experience and knowledge
  • Financial expertise, particularly for management purposes but also in terms of meeting statutory requirements
  • Control and management practice
  • Guardianship

Corporate Governance

During their time with several companies our staff have:

  • substantially improved the structure and processes of Board and Management Teams to ensure compliance with good practice and regulations.

The increased focus on corporate governance and the emphasised role of Non -Executive Directors following a succession of well-publicised corporate failures is discussed in CIMA's March 2003 report The Role of the Non-Executive Director: Making Corporate Governance Work which "...provides an overview of recent corporate governance developments, as well as some pointers as to how accountants and finance professionals can contribute to the effectiveness of their boards."


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axiom-e...the Strategic Financial Management Consultancy
97 Brewery Road, Pampisford, Cambridge CB22 3EW United Kingdom
Tel: +44 (0)1223 839579 Fax: +44 (0)1223 839581 Email: info@axiom-e.co.uk