Stakeholders ’ Expectations of Board Roles: The Case of Subsidiary Boards

Abstract. What is the best for a company? In most countries it is considered to be a duty for board members to act in the best interest of the company. Few, however, question “who or what really counts ” in the boards ’ governance decisions, and that boards may play various roles in carrying out their duties. In this paper we review and discuss stakeholder expectations of board roles. The arguments are illustrated by an empirical example. Depending on the definition of what is the best for the company, key stakeholder groups may have different expectations of various board roles. Key words: board roles, corporate governance, subsidiary boards, stakeholders 1