Good inductions are critical to shaping a good board - a simple guide

Guide | Company Secretarial
Published: 28th April 2022
Area: Corporate & Commercial

Share This

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

Get In Contact

Shaun works in our company secretarial team supporting various client companies, including AIM listed, technology start-ups and SME companies.

Company Secretarial

Our team has the knowledge and technical ability to ensure all your compliance and corporate governance needs are taken care of.

Our Thoughts

All the latest thoughts and insights from our team

Industrial action participation – protection from detriment cannot be read into TULR(C)A

11 May

Corporate & Commercial

Industrial action participation – protection from detriment cannot be read into TULR(C)A

In a further case of real interest to those involved in unionised sectors of […]

Read article Right Arrow

We support new Muslim youth mentoring scheme

11 May

Firm News

We support new Muslim youth mentoring scheme

Midlands law firm Shakespeare Martineau is supporting British Muslim charity Mercy Mission UK in […]

Read article Right Arrow

SHMA® On Demand

All the latest on-demand content

Charities Act 2022 – revolution or evolution?

24 May

Andrew Wilkinson, Partner

Charities Act 2022 – revolution or evolution?

On 24 February 2022, the long-anticipated Charities Bill received Royal Assent becoming the Charities […]

Register Right Arrow

Leicester Curry Club

26 May

Leicester Curry Club

We aim to bring together senior like-minded individuals from across the professional services community […]

Register Right Arrow