In 2020, the world entered an unprecedented economic era, triggered by a global pandemic and the contemporaneous collapse in commodity prices, demand for certain goods and services, and a breakdown in supply chains. This was further fueled by constraints on productivity and consumerism due to a need to practice social distancing and to shelter in place. The effects of this disruption will be felt for years to come, but we are already seeing a substantial rise in unemployment, mass layoffs and a growing number of corporate bankruptcies and restructurings.
Companies going through restructuring must address several challenges, among them the need to reconstitute their corporate board. This is not an easy task. The normal complexity of director recruitment and onboarding, not to mention the effective implementation of corporate governance practices, is only increased as a result of the company’s legal and financial challenges.
Despite those challenges, however, it is possible to build a strong, highly effective corporate board post-restructuring and to populate that board with well-regarded directors.