Modernising Trust Ports 2nd Edition.pdf - SailingNetworks

3. THE BOARD.2 Management.2.1 A trust port, in common with any commercial undertaking, requires effectivestrategic direction based on a complete understanding of the direction beingtaken and its associated opportunities and risks. Prudent financialmanagement is central to the duties to be discharged by every trust portboard member and officer. The principal role of its chairman is to ensure thatthe board works effectively in directing the affairs of the port and has a clearunderstanding of its role and responsibilities. The chairman has a key role toplay by leading the board in giving the port this direction. Given the key roleof chairman, unless there are strong and persuasive reasons to the contrary,such as where the Secretary of State retains power of appointment overnationally significant ports, the chair should be appointed by the board.Subject to the provisions in section 3.4 below about length of term, suchappointment should not be dictated by rotation. It should be made on thebasis of qualifications and experience..2.2 The ultimate effectiveness of the trust port is dependent to a substantialextent on the quality of the information it receives. The chairman shouldensure that the executive regularly provides the board with a clear picture offinancial and business performance against the plans previously agreed bythe board. The chair should also ensure that the executive provides theboard, on a regular basis, with clear and comprehensive reports on specificprojects. The chair is responsible for regularly reviewing the quality ofinformation thus provided to the board. The chair is also responsible forensuring that papers are circulated and meetings notified in good time to allboard members..2.3 The chair should manage the board and ensure that it and its officials standabove sectional interests and act as true independents. The chair shouldhave the ability to take an overview of board discussion and summarise itwith an intelligent commentary, including his or her own personal views..2.4 Both the board and the chief executive have the capacity and responsibility todirect the affairs of the trust port in accordance with the criteria of prudentmanagement. However, it is very important that there be a positivedemarcation between their roles. The primary concern of all involved is thewelfare of the port and all its stakeholders. However, it is for the board togive strategic direction to the port and to provide management with thechallenge that ensures maintenance of a cost effective and accountableservice. It is for the executive to use their professional skills to achieve boardobjectives through day to day control of port operations..2.5 These functions should not overlap. The board should be in a position totake an independent and detached view of management and itsperformance. The board should not seek to interfere directly in the day today management of the port. They should collectively ensure that officershave clear strategic direction and reporting lines so that they can effectivelymanage the port. Clear separation of board and executive functions providesvaluable checks and balances against undue (potentially unaccountable)concentration of power within the trust port. The executive should not seek toexercise a strategic policy making function in launching on any significant26