Chapter 6 - Lack Of Effective Challenge

Question 1

Critisms of NEDs

Answer 1

They don’t provide effective challenge.

Question 2

Chairs role in effective challenge

Answer 2

Code places responsibility on chair to facilitate constructive board relations and the effective contributions of all NEDs

FRC guide on board effectiveness expands this saying the chair should:
> shape culture in boardroom
> encourage meeting engagement
> foster relationships based on trust, mutual respect and open communication between board members

Question 3

SiD

Answer 3

A SID may help ensure NED opinions are considered

Question 4

Ultimately NED effectiveness will depend on…

Answer 4

1. Their own calibre
2. Boardroom culture
3. Quality of information