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To assimilate an individual as a welcome member of the board. To communicate practical procedural duties. To reduce the time taken for an individual to become productive in their duties. To ensure retention of individuals for future periods. Induction package The company secretary is generally responsible for directors' induction. The Institute of Chartered Secretaries and Administrators (ICSA) induction package suggests the following items for immediate provision to the director. Director's duties: • Brief outline of director’s role and responsibilities under codes of best practice.
A hidden cost associated with the agency relationship, and one of particular significance here, relates to the increased risk taken on by shareholders due inevitably through relying on someone else to manage an individuals money, and specifically due to the acquisitive strategy employed by the company and the difficulty in gauging the financial performance and level of internal control within the corporation. This option is always available to shareholders if they consider the risks involved too great for the return they are receiving.
A board that meets only occasionally may be unfamiliar with each other. This can make it difficult for board members to question management. KAPLAN PUBLISHING 41 The board of directors • CEOs often have forceful personalities, sometimes exercising too much influence over the rest of the board. • The current CEO's performance is judged by the same directors who appointed him/her making it difficult for an unbiased evaluation. 3 Board meetings Practical suggestions for board meetings include: • Agenda should strike a balance between long and shortterm issues and every director should have the opportunity to place items on the agenda.