Guidance on director induction processes updated to include the chair
While the induction process for a newly appointed chair does not differ significantly from the process for inducting newly appointed directors, there are additional matters to be considered when a new chair is appointed which take into account the different role which the chair has to play in a company. These matters are outlined in the Good Governance Guide on issues to consider when developing director induction processes which has been recently updated to include a section on the induction of a board chair.
The company secretary has an important role to play in the induction process and will be responsible for ensuring that many of the matters which arise from the appointment of a new chair are attended to. According to the guide, some of the matters to be considered when a new chair is appointed to a board include:
- if the chair is to be a company bank account signatory, ensuring the board passes the appropriate resolutions and notifying the banks of the change
- meeting with the new chair to discuss any proposed changes to board processes
- discussing the chair’s expectations for director development and education and incorporating this into the company’s annual calendar
- drawing the chair’s attention to those clauses in the company’s constitution (or other key documents) that relate to the powers of the chair
- identifying appropriate opportunities to introduce the new chair to important company stakeholders.
The guide has also been updated to include additional examples of information or documentation that may be included in an induction pack for directors to bring it up to date with current practices. The new guide concludes with a handy list of matters arising from the director appointment process which are commonly the responsibility of the company secretary, which need to be considered as part of the induction process.
To view the guide, click here.