The nomination committee in a company is responsible for appointments and re-appointments to the board, succession planning and overseeing a diverse pipeline for succession.
However, the board appointment itself is not the end itself with the chair person and the nomination committee usually responsible for developing an induction programme for all appointees to the board. Both the UK corporate governance code and the QCA code recommend a full, formal and tailored induction programme. A lack of adequate training and an induction programme is clear one barrier to recruiting new directors without previous board experience and new board members will always want to be in the best position to contribute to their organisation as swiftly as possible. A well-prepared induction programme can provide new appointees with the information needed to “hit the ground running”.
An induction process should, where possible, include:
A tailored programme put together in collaboration with the incoming director and the chair, senior independent director, company secretary
Content delivery that is balanced between hard copy reading material, visual presentations and face-to-face discussions
Regular progress reviews for the incoming director to provide feedback, raise questions and concerns on the induction process
An overview of the company, its board and committees, governance structure and corporate calendar for the year ahead
Brief overview of areas of business activity, strategy, risk profile, KPIs, organisation specific jargon and glossary of specific terms
A guide to directors’ duties and obligations and sanctions which can be imposed for failure to comply
Overview of shareholder voting, feedback and a copy of the latest board’s evaluation report if applicable
Other corporate information such as:
- latest financial statements and current budget
- group structure and people charts
- business plans, major customers, suppliers and competitors
- employee handbook
- share dealing code and process for inside information
- anti-bribery, whistleblowing , disclosure and ESG policies significant shareholders and its investor relations policy
Procedure on conflicts of interests
Procedure for approving board member expenses
Overview on access to training and professional development
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Shaun works in our company secretarial team supporting various client companies, including AIM listed, technology start-ups and SME companies.