Improving boardroom standards

A two-tiered board structure has been established for an Australian company. The supervisory board or "corporate senate" is elected on the basis of one vote per shareholder, instead of the normal one vote per share. In this way the senate can be appointed by small shareholders to blow the whistle on fraud, misrepresentation and any other self-indulgence on the part of the directors or major shareholders. The three-person sensate has power to veto some board resolutions, to nominate new directors and to report to shareholders.