Influence of attributes of directorship on corporate governance in small scale tea companies in Kiambu County in Kenya

Abstract

In the recent past, corporate governance has become of great concern especially in running of institutions and companies. The board of directors are mandated to steward these institutions and oversee the work of management. The board is supposed to act as fiduciaries to the companies acting in their best interest. To be able to achieve this competently, directors should possess some key attributes that will enable them perform their duties effectively. This study sought to establish the influence of attributes of directorship on corporate governance in small scale tea factory companies in Kiambu County of Kenya. Data was collected from the directors and factory unit managers using questionnaires that were designed in line with the code of best practices of corporate governance as described by private sector initiative for corporate governance trust (1999).The study established that directors’ experience in other boards, possession of professional qualifications and work experience in other industries significantly influenced corporate governance both in as far as contribution to the board and appreciation of internal and external factors affecting governance were concerned. The study however found out that educational level especially since all directors were A level and above and age did not significantly influence corporate governance. The study also established that gender representation in governance as envisaged in the new constitution had not been embraced in the tea factories as all directors were male and recommended inclusion of both genders in the directorship. The findings of the study will greatly impact on policy, theory and practice of corporate governance in Kenya.