APRA Prudential Standard CPS 510 contains a clause on Board Renewal:
“The Board of a locally incorporated APRA-regulated institution must have in place a formal policy on Board renewal. This policy must provide details of how the Board intends to renew itself in order to ensure it remains open to new ideas and independent thinking, while retaining adequate expertise. The policy must give consideration to whether directors have served on the Board for a period that could, or could reasonably be perceived to, materially interfere with their ability to act in the best interests of the institution. The policy must include the process for appointing and removing directors, including the factors that will determine when an existing director will be re-appointed.”
Discovering New Energy
In our view Board Renewal is not just about finding new directors. It’s about directors engaging with their governance work in a new way. Discovering New Energy. The key questions are:
How do boards commence the process of renewal?
How can directors engage in authentic dialogue?
How do directors find new energy to confront the challenges of they face?
How do directors avoid “Groupthink” and maintain an independent perspective?
Boardroom dynamics are shaped by a range of influences. Industry sector, the regulatory environment, ownership structure, public profile, group strategy and core purpose all have an influence. Sometime we need to find a new way to engage with our work as directors and tap into new energy sources. This can be challenging. Sometimes new language is required to open up possibilities.
Directors face a once in a decade challenge. Various enquiries have raised questions about corporate governance and board effectiveness. Our specialist advisors have been working with boards and directors for over 25 years. We understand the pressures and issues confronting directors at the moment. For an initial conversation contact Geoff Nunn on 0418 595 107 or email: email@example.com