Page 10 - AAA Integrated Workbook STUDENT S18-J19
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Chapter 13 4
2.4 Leadership
Each company should have an effective board who take collective responsibility
for the long term success of the company.
There should be clear division of responsibilities between running the board and
the running of the company.
No one should have unfettered powers of decision.
The chairman should lead the board and ensure it is effective.
Non-executive directors should constructively challenge and help develop
strategy.
2.5 Effectiveness
The board should have the appropriate balance of skills, experience,
independence and knowledge of the company.
Appointment of directors should be made through a formal, transparent and
rigorous process.
Directors should allocate sufficient time to discharge their responsibilities.
All directors should receive induction on joining the board and should regularly
update and refresh their skills and knowledge.
The board should be supplied with timely information in an appropriate form and
quality.
The board should undertake formal and rigorous evaluation of its performance
and that of its committees and individual directors.
All directors should be submitted for re-election at regular intervals subject to
satisfactory performance.
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