All directors should receive induction on joining the board and should regularly update and refresh their skills and knowledge.
There should be a formal induction process for all new appointments, with a similar structure to the induction for any new role, but with particular attention paid to managing the change in relationships.
Here are five areas new directors should consider, even if there is no formal induction process.
The objective of induction is to provide a new director with the information he or she will need to become as effective as possible in their role within the shortest practicable time. Induction should include:
All directors should receive induction on joining the board to obtain appropriate knowledge of the company and gain access to its operations and staff. The chairman should ensure that new directors receive a full, formal and tailored induction on joining the board.
The UK Institute of Chartered Secretaries and Administrators recommends that a new director should expect to make himself/herself available for an additional 10 days for the induction process. As part of this, directors should avail themselves of opportunities to meet major shareholders.
The company secretary is responsible for facilitating the induction programme under the direction of the chairman. One option is to partner a new non-executive director with a particular executive director to hasten an understanding of a particular part of the business.
Where the director will be joining a committee, he or she should be provided with copies of the committee minutes from the preceding 12 months.
You can download a free induction checklist for new directors.
Brefi Group Limited
15 Clos Mancheldowne
Barry CF62 5AB, United Kingdom
Reg. No. 1669333