Of School Boards and Superintendents

A beloved, respected, and highly accomplished superintendent in a rural, high-risk district, Mr. Carroll, is confronted with dissident board members for the first time in his 7-year tenure. Two newly elected members have strained relationships between current board members and are calling for his resignation based upon what they perceive as low SAT scores, the excessive amount of Carroll’s salary, and the district’s focus on academic growth, rather than achievement, of students. Despite mediation from the state aimed at easing tensions on both sides, the issue reaches a boiling point at a board meeting.

Beyond the looking glass… What could ‘fit-for-future-purpose’ governance operating models look like in the future?

his study builds further on the paper presented at Virtus Corporate Governance Conference in May 2020, which explored the suitability and current relevance of board operating models. That paper highlighted challenges relating to the suitability of prevailing board operating models and posited some alternative board governance models as a provocation. While a considerable amount of academic and commercial research focuses on current board issues, performance drivers, etc., there is little apparent futuristic thinking, i.e., consideration of the broader changes that will be likely that could inform, modify, accelerate or possibly negate current thinking on what boards should be doing to be effective

The Pniël Land Dispute of the Early 20th Century

In 1834 the slaves of the Groot Drakenstein area were emancipated. They continued to work for farmers in the surrounding area and this resulted in the formation of a community where these farm workers, now able to leave their employer’s land, would return to in the evenings and call home. This land was originally a donation of De Goede Hoop farm, intended mainly for the establishment of a mission station for recently freed slaves. Reverend J.F. Stegman was appointed by the Apostolic Union, a non-denominational Protestant group, as the first reverend of this mission station. At the end of 1834, the Board of Directors of the “Mission Institute Pniël,” a body instituted under the auspices of the Apostolic Union with the initial aim of operating for the benefit of the local people, purchased the Papiere Molen farm. A major portion of the farm was then divided into 99 holdings and applicants from the community, who were accepted as occupiers of these holdings, were known as “erf-holders.” In the following years it became a condition of tenure that they would pay a monthly rental to provide a salary for the Minister, which became the source of contention following the passing of Reverend Stegman. In 1905, local residents of Pniël spoke out regarding their desire to have more input in the operation of the mission station and usage of the land, and they questioned the overall authority of the current board of directors. This led to a court case in which the Board of Directors acted as the defendants. This paper will seek to examine the circumstances for this case as well as those surrounding its outcomes through the lens of a modern reader.

Poverty Reduction and Growth Trust - 2017 Borrowing Agreements with the Bank of Spain, the Government of Japan and the People's Bank of China

the Poverty Reduction and Growth Trust (PRGT or Trust), has entered into a new borrowing agreement with the Bank of Spain (Spain), amendments to the 2010 NPA with the Government of Japan (Japan), and a new note purchase agreement (NPA) with the People’s Bank of China (China). The new borrowing agreement with Spain, the amendments to the NPA with Japan, and the new NPA with China provide new resources of SDR 450 million, SDR 1.8 billion and SDR 800 million, respectively, to the General Loan Account of the PRGT for a total amount of SDR 3.05 billion in new PRGT lending resources. The new borrowing agreement, the augmentation under the amended NPA and the new NPA are among the first ten loan contributions concluded in the context of the current Board endorsed effort to raise SDR 11 billion in new PRGT loan resources. These became effective on February 22, 2017, for Spain; April 20, 2017, for Japan; and April 21, 2017, for China. Pursuant to Section III, paragraph 2 of the Instrument to establish the PRGT, the Managing Director is authorized to enter into borrowing agreements and agree to their terms and conditions with lenders to the Loan Accounts of the Trust. This paper presents to the Executive Board for information the new borrowing agreement with Spain, the amendments to augment the existing agreement with Japan, and the new NPA with China. The new borrowing agreement with Spain and NPA with China incorporate the following recent changes to the Fund’s framework for concessional lending to low income countries, which have also been adopted, as applicable, in prior amendments to the agreement with Japan: (i) the extensions of the commitments and drawdown period for PRGT loans to end-2020 and end-2024, respectively; (ii) the incorporation of the Chinese Renminbi (RMB) interest rate instrument of six month maturity for borrowing agreements in currencies; and (iii) the provision that, if the derived six-month SDR interest rate formula results in a negative rate, the applicable interest rate shall be zero percent. With respect to the amendment of the NPA with Japan, in addition to increasing the principal amount of notes that can be issued under the NPA, Japan’s agreement was also modified to: (i) provide more flexibility in the media of payment for purchases under the NPA; (ii) set up a maximum amount for monthly purchases under the NPA; and (iii) to establish a preferred media for payments of interest and principal amount of the notes issued under the NPA. Except for these changes, all other elements of the NPA with Japan remain unchanged.

A New Mission Statement for the MBC Corporation

Dave Williams has taken over as CEO for MBC Corporation and wants to change the mission statement of the company. However, he needs to get approval from four shareholders: a former board chairman, his father and current board chairman, and two members of his own executive team. Williams must navigate the varying dynamics and opinions of the shareholders to gain their buy-in and create a new mission statement that will take MBC on a new path for the future.The concept this case addresses is that of the mission statement and how it is used to align an organization and its stakeholders. After students have analyzed this case, they will be able to: Communicate the importance of a mission statement Engage stakeholders in the creation of a mission statement Implement a new mission and culture at an organization

Poverty Reduction and Growth Trust - 2016 Borrowing Agreements with Danmarks Nationalbank, the Norwegian Ministry of Finance Representing the Kingdom of Norway, and the Sveriges Riksbank

The Fund, as Trustee of the Poverty Reduction and Growth Trust (PRGT or Trust),entered into an amendment of the 2010 borrowing agreement with Danmarks Nationalbank, and new borrowing agreements with the Norwegian Ministry of Finance representing the Kingdom of Norway and the Sveriges Riksbank (hereafter Denmark, Norway, and Sweden, respectively), by which the counterparties will provide new resources to the Loan Accounts of the PRGT in the total amount of SDR 1.1 billion (see attachments). The augmentation under the amendment and the two new agreements are the first three loan contributions to be concluded in the context of the current Board-endorsed effort to raise SDR 11 billion in new PRGT loan resources. These amendment and new agreements became effective on November 17, 2016.

Eni Lestari in Conversation with Annalee Lepp

Eni Lestari is an Indonesian domestic worker and migrant rights activist who has been working in Hong Kong since 1999. She is the current chairperson of the International Migrants Alliance (IMA), the first global alliance of grassroots migrants’ organizations, founded in Hong Kong in 2008. She is also the current chairperson of the Association of Indonesian Migrant Workers in Hong Kong (ATKI). Lestari is also a current board member of the Global Alliance Against Trafficking of Women (GAATW). In January 2016 she sat down with Annalee Lepp, Chair of the Department of Gender Studies at the University of Victoria, to talk about her experiences as a migrant worker and activist.

Recent Fall in the SDR Interest Rate--Implications and Proposed Amendments to Rule T-1

The SDR interest rate is at historic lows. Under the current Rule T-1, the SDR interest rate is calculated as the weighted average of interest rate instruments in the SDR basket, and stood at just 3 basis points for the week of October 13th. Market rates could decline further, which could reduce the SDR interest rate to zero or negative levels under the formula of the current Rule T-1. However, there is no authority under the Articles of Agreement for the Fund to establish a zero or negative SDR interest rate. The wording of the relevant provisions in the Articles does not leave room for a zero or negative rate, and nothing in the legislative history of the First and Second Amendments suggests that zero or negative rates were ever contemplated. Negative SDR interest rates would also have adverse implications for the Fund’s finances. Moreover, very low SDR interest rates affect the functioning of the burden sharing mechanism for deferred charges. Under current Board decisions, the equal burden sharing, where creditors and debtors as a group generate equal amounts to cover deferred charges, requires a minimum positive SDR interest rate to operate. The SDR interest rate has now fallen below that minimum level. This paper proposes technical amendments to Rule T-1 and the burden sharing mechanism to address these issues. In particular, the paper proposes setting a 5 basis point floor on the SDR interest rate, changing the rounding rules on the SDR interest rate and the burden sharing adjustment, and reducing the 1 basis point minimum of the burden sharing adjustment to 0.1 basis point. These measures would preserve a minimal capacity of equal burden sharing aimed at protecting the Fund’s balance sheet, while limiting potential departures of the SDR interest rate from market interest rates.