This article was written by Rebecca Howlett, Partner and Head of Beauty and Personal Care, Rosanna Brown, Senior Associate, and Rubina Kakuji, Corporate Lawyer, at law firm Freeths.
A whole scale change to the board is a radical decision and will be driven by numerous factors, so it should not be taken lightly.
If you are a company seeking to increase your retail presence, improve profitability, embrace innovation or take the business in a different direction due to challenges in the market, then the right team making up a new board could be just the right change for your brand.
When is a change to the board needed?
The board is responsible for setting the direction and strategy of the business and driving its performance.
Directors elected to the board are often selected for their expertise in a particular area or industry, and are right for the business at the point in time they are appointed.
However, as your brand evolves, is the board leading that growth or are they holding the business back? Is your business market-leading on key trends? Or has there been a drop in the financial standing of the business?
The key driver for Revlon’s change was ensuring it had a board with deep knowledge of the global consumer, retail and beauty industries to successfully lead it out of its bankruptcy.