Corporate Governance 3

Question 1

What are the 3 principals of composition, succession, evaluation?

Answer 1

J- appointments to the board should be subject to a Forman’s, rigorous and transparent procedure and an effective succession plan based on merit and should promote diversity.

K- the board and it’s committees should have a combination of skills, experience and knowledge. And membership regularly refreshed

L- annual evaluation of the board should consider its composition and effectiveness

Question 2

What’ does provision 23 say ?

Answer 2

A separate section of the annual report should describe the work of the nomination committee including

The process it has used to board appointments

How the board evaluation has been carried out

The boards policy on diversity and the progress on achieving it

The gender balance of those in senior management

Question 3

What does provision 17 say ?

Answer 3

The board should establish a nomination committee to lead the process for appointments. A majority of members should be non excs, the chair or a non exc should chair the committee, however the chair should not chair the committee when dealing with the appointment of its successor

Question 4

Provision 18 ?

Answer 4

All director should be subject to annual re-election to the board

Question 5

Provision 19 ?

Answer 5

The chair should not remain in the post beyond 9 years

Question 6

Provision 21 ?

Answer 6

There should be a formal and rigorous annual evaluation of performance of the board

In FTSE companies the board evaluation should be externally facilitated at least every 3 years