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TN/SIT/19
Edition 2027 · effective 1 January 2027

Boards & governance · Board deadlock

The board is split, and the company is waiting.

A divided board stops strategy, appointments and transactions. An independent chair or evaluator helps the board decide without taking the decision away from it.

§ 01What it looks like

Recognise it early. The earliest moment is the cheapest.

Early signals

What you notice first

Small, and easy to explain away.

  • Votes split along the same line every time
  • Information is withheld between directors
  • Meetings are prepared as battles
  • Management takes sides
What is at stake

What waiting can cost

Usually more than the original issue.

  • The company’s ability to act
  • Directors’ duties and liability
  • Confidence of investors and lenders

§ 02The Neutral route

Usually: Neutral Chairing.

Neutral Chairing restores a fair process; evaluation gives directors an outside reference on the substance.

Human checkpoint. Guidance, not legal advice. You choose the role; the Neutral discloses conflicts and accepts a mandate before any file is shared.

§ 03The steps

What a good process looks like.

  1. Name the decision and the information gapBefore anything else01
  2. Appoint an independent chair for the decisionThe moment independence enters02
  3. Commission an independent evaluation if neededWhere the work is done03
  4. Minute the process carefullySo it holds04

§ 04Prepare and avoid

What to bring. What to leave out.

(Bring)

01

Articles and board charter

02

Board papers

03

Directors’ positions

04

Deadlines

(Avoid)

✕

Lobbying directors outside the room

§ 05Your version

Every situation is different. Describe yours.

Write in your own words. Leave out names and confidential details.

§ 06Related

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