Director Tools

Improving board effectiveness

Board performance is vital to the success of an organisation. To ensure the board is a strategic asset, it must have the right mix of skills and knowledge as well as the ability to work effectively as a team.

Today's rapidly changing business environment also requires boards to be flexible and responsive in order to meet unexpected needs and challenges.

Download

Board evaluation and director appraisal

With attention on corporate governance and accountability increased by the global financial crisis, there is an expectation that the performance of boards and individual directors will be regularly evaluated.

This is reflected in Recommendation 1.6 (a) of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations 3e (2014)

Download

Checklist for assessing board composition

The ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations 3e (2014), introduced a number of substantive changes, including a number of governance practices that were previously noted only in the publication’s commentary being elevated to recommendations, meaning that they must now be reported against on an if not, why not basis.

One such change, under Recommendation 2.2, is the need to disclose the company’s board skills matrix which shows the mix of skills and diversity that the board currently has or is looking to achieve in its membership.

Download

Directors' fees

It is becoming more important for boards to have a clear and transparent remuneration process due to heavy scrutiny from an organisation’s shareholders, stakeholders and the media.

Transparency encourages market confidence and allows comparisons between organisations.

Download

Board charter

Board charters can facilitate the discussion and documentation of governance policies and guidelines.

The role and responsibility of the board could be set out in a board charter or in some other document published on the entity’s website or in its annual report

Download

Board committees

The boards of larger organisations often delegate work to committees of directors to more effectively deal with complex or specialised issues and to use directors’ time more efficiently.

Committees make recommendations for action to the full board, which retains collective responsibility for decision making.

Download

Annual board calendar

A well-planned meeting schedule identifies the year’s key issues and helps directors to ensure that matters requiring their attention are addressed in a timely and logical manner.

A board calendar is unique to every organisation. It will vary according to the industry sector, the organisation's own process of governance, the size and governance maturity of the organisation and its stage of evolution.

Download

Board meeting agenda

The purpose of a board meeting agenda is to improve the effectiveness of board meetings. It is the tool the chair uses to keep boardroom discussions focused.

Although each board will have an agenda that reflects specific topics of relevance to a company at that time, a number of general items will be included on most agendas.

Download

A director’s guide to preventing and responding to sexual harassment at work

Boards must take a more activist approach to preventing and addressing workplace sexual harassment in Australia.

In response to the recent Australian Human Rights Commission report, the Australian Institute of Company Directors has released the following resources to provide context, practical insights and questions for boards and directors on this systemic and serious issue

Download