2nd YOUNGER MEMBERS CONVENTION

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2nd YOUNGER MEMBERSCONVENTION
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• 1-2 December 2003
• Moat House, Glasgow

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Alan FrostCorporate Governance
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• Queen Mab Consultancy Ltd

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The delicate die early, and I, as a survivor,
among bleak winds and plumping rain, have been
sometimes tempted to envy them their fate
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• Edinburgh Picturesque Notes
• Robert Louis Stevenson

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Pluralism in Action

• Queen Mab Consultancy
• Teachers Building Society
• Bournemouth University
• INVESCO Pensions Ltd
• NFU Mutual
• Car Crash Line Group plc
• Regular Forces Employment Association Ltd
• United Kingdom Falklands Islands Trust

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Tuscany
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Types of Board

• Holding Boards
• Private Companies
• Divisional Boards
• Subsidiary Boards (Minorities, Joint Ventures,
  Associates)
• Charities, Quangos and other non-profit

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Types of Director - Simple

• Chairman
• Chief Executive
• Other Executives
• Associates
• The old retainer
• The family
• The maverick
• The court jester
• The hybrid
• The professional

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Types of Director - Advanced

• Organiser
• Focuser
• Challenger
• Probe
• Discloser
• Honest Broker
• Architect

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Types of Director - Advanced

• Builder
• Lateral Thinker
• Conscience
• Summariser
• Mentor
• Ambassador
• Bulldog

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The Directorship Dial
Envisioning

• Integrating

Discovering
Controlling
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Governance Reviews

• Cadbury (1992)
• Greenbury (1995)
• Hampel (1998)
• Turnbull (1999)
• Company Law Review (2001)
• Higgs (2003)
• Revised Combined Code (2003)

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New Combined Code

• Guidance for chairmen NEDs
• Summary of duties of nomination and remuneration
  committees
• Appointment procedure (due diligence, sample
  letter, induction, performance evaluation
• Audit committees
• Annual reports

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Appraisal of Board

• Are structures meeting objectives?
• Diversity
• Refreshment process
• Sub-committees
• Information flow
• Timing and length of meetings

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Other questions

• Balance between executives and NEDs
• Technical competences
• Informal meetings
• Nature of debate
• Interpersonal relationships
• Role definition

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Quality of Board

• Quality of people
• Culture
• Size of Board
• Expertise available
• Stakeholders

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Personal appraisal

• Job definition
• Measure competencies
• Self-assessment
• SMART
• 360 Review
• Fireside chat
• Issues

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A Modern Framework for Governance

• Guiding principles (FSA, FENTO, NHS etc)
• Nolans Seven Principles of Public Life
• Job Description
• Role Definition
• Induction process
• Constructive feedback
• Review/Explore/Agree
• SMART objectives

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Discussion

• ..and thanks for listening
• Alan Frost