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It is important, for effective participation in board strategy development, not only for the board to get to know the new NED, but also for the NED to build relationships with the existing board and employees below board level. Expandable text ­ The induction process Objectives of induction • • • To communicate vision and culture. • • 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.

Here we will look at the three reports that contributed to the existing code with regards to the board of directors. Illustration 1 – Maxwell and Mirror Group Newspapers In 1991 the body of Robert Maxwell was found off the Canary Islands. The investigation that followed his death led to one of the most shocking revelations to hit British business for many years, and the collapse of several high profile listed companies. KAPLAN PUBLISHING 37 The board of directors The key to the ‘success’ of Maxwell’s deception was his unrivalled position on the boards of his many companies (he combined the role of chairman and chief exective at Mirror Group Newspapers, which placed him in an extremely powerful position; his companies had no non­ executive directors, which silenced any potential dissenting voices; he also had single authority over the pension fund, which allowed him to use the fund as collateral for ever increasing borrowings), allowing him to make decisions that were in his own interests rather than those of shareholders.

KAPLAN PUBLISHING chapter 3 • • • • Annual accounts, interims and KPIs. Company structures, subsidiaries and joint ventures. Treasury issues such as financing and dividend policy. Company brochures, mission statements. Board operations: • • • • Memorandum and articles. Minutes of 4­6 previous meetings. Board composition/profiles of members. Details of committees, meeting procedures and schedule for future meetings. Three months later: • • • • • • • Company’s history plus products and services brochures.

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