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Chapter 3

For listed companies:

 appoint appropriate NEDs

 establish remuneration committee

 establish nominations committee

 establish audit committee

 assess its own performance and report it annually to shareholders

 submit themselves for re-election at regular intervals.

NB All directors in FTSE 350 companies should be put forward for re-election every
year

1.2 Potential problems for boards

 rely on management to report information to them allowing problems to be
obscured

 A board that meets only occasionally may be unfamiliar with each other. This can
make it difficult for board members to question management.

 CEOs forceful personalities exercising too much influence over the rest of the
board.

 CEO's performance is judged by the same directors who appointed him/her
making it difficult for an unbiased evaluation.

1.3 What is Diversity?

Diversity describes the range of visible and non-visible differences that
exist between people.

Managing diversity harnesses these differences to create a productive
environment in which everybody feels valued, where talents are fully
utilised and in which organisational goals are met.

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