Page 123 - F1 Integrated Workbook STUDENT 2018

Corporate governance

The main provisions of the Code are:

4.1 Leadership

 Every entity should be headed by an effective board with collective
responsibility.

 There should be a clear division of responsibilities between the Chairman and
the Chief Executive.

 No one individual should have unfettered powers of decision.

 Non-executive directors should constructively challenge and help develop
proposals on strategy.

4.2 Effectiveness

 The board should have the appropriate balance of skills, experience,
independence and knowledge.

 There should be a formal, rigorous and transparent procedure for the
appointment of new directors.

 All directors should receive induction and should regularly update and refresh
their skills and knowledge.

 The board should be supplied with quality and timely information to enable it to
discharge its duties.

 The board and individuals should be subject to a formal and rigorous annual
evaluation of performance.

 All directors should be submitted for re-election at regular intervals.

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