Click here to download a pdf - Director Magazine
Click here to download a pdf - Director Magazine
Click here to download a pdf - Director Magazine
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
THE BOARDROOM CONVERSATIONcontribution <strong>to</strong> warrant their continuing membership of the board.In the latter case, it would be important <strong>to</strong> talk <strong>to</strong> other direc<strong>to</strong>rs, includingthe chairman and possibly the SID <strong>to</strong> discuss the situation. Regular boardevaluations can help <strong>to</strong> provide some context and independent feedback <strong>to</strong> moreaccurately assess the individual as a vital <strong>to</strong>ol as well as <strong>to</strong> assess the collectivevalue of members of the board. By aiming <strong>to</strong> have a diverse board, it is inevitablethat people will bring a different mix of experience and expertise that will becalled upon in different ways, depending on the critical issues that the board isaddressing. The UK Corporate Governance Code encourages board members <strong>to</strong>continue a process of self-development and <strong>to</strong> up their skills in some importantareas. It may be that this is a process of ongoing learning and that with practiceand support, direc<strong>to</strong>rs can become increasingly effective. Or the conclusion maybe reached that it would be appropriate for a direc<strong>to</strong>r <strong>to</strong> resign.The process of election and re-election <strong>to</strong> the board is critical in ensuring thatboards are continuously re-invigorated, so it should be part of the ongoingmanagement of a board <strong>to</strong> activelymoni<strong>to</strong>r and manage both the If t<strong>here</strong> has beenrecruitment and retirement of vigorous discussion,board members.t<strong>here</strong> will be occasionswhen direc<strong>to</strong>rs willIn the case w<strong>here</strong> a direc<strong>to</strong>r feelspragmatically support acompelled <strong>to</strong> consider resignationdecision that theyon the basis of principle then theargued againstcircumstances are more sensitiveand complex. The first step for a direc<strong>to</strong>r is <strong>to</strong> take as detached a perspective aspossible about the situation and <strong>to</strong> be as clear and precise about the grounds forpossible resignation. The board’s role is <strong>to</strong> challenge and support and, if t<strong>here</strong>has been vigorous and open discussion, t<strong>here</strong> will be occasions when individualdirec<strong>to</strong>rs will pragmatically support a decision that they argued against. At othertimes, it might be an issue of principle that is so important <strong>to</strong> them that the onlyway they can register their opposition is through resignation. In suchcircumstances a careful conversation with the chairman would be essential.If a direc<strong>to</strong>r or direc<strong>to</strong>rs have concerns about the chairman or they orshareholders express concerns that are not being addressed by the chairman or59