Poor board governance blights UK businesses

In late 2016 when we first invested in DX Group, a British logistics provider, we were struck by just how much its chairman had on his plate. As well as DX, he held five other chairmanships and a further three board seats.

Meanwhile, the DX board as a whole was rather underpopulated, comprising four members in total, none of whom, when you looked beneath the bonnet, were truly “independent”. With a small “country club” board and a busy chairman, this did not look like corporate governance that could deliver success.

Sure enough, the company’s shares dropped 95pc from their IPO price a few years earlier. Over the course of eight months, we worked with the company to install an entirely new board,…

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