PUBLICLY LISTED COMPANY ( PLC )
STRUCTURED BOARD ROTATION
A PUBLICLY LISTED COMPANY (PLC) IN THE MIDDLE EAST NEEDS A STRUCTURED APPROACH TO APPOINTING THE RIGHT SKILLS TO THE PROPOSED BOARD FOR ELECTION AT THE NEXT ANNUAL GENERAL MEETING (AGM) OF SHAREHOLDERS.
The Chairman of the Board, with the active support of the Chairman of the Governance and Nominations Committee, require a structured board rotation process to ensure that the newly appointed Board comprises the right skills for the next 3 years and that current Board Members who may leave the Board can do so without any loss of face.
Governance Creed adopted a structured Board Rotation process, comparing the organisation to its “best in class” industry leaders and mapped out the required skills the Board would need over the next 3 years. A skills gap was subsequently carried out with the profile of new Board Members’ skills being identified and document. Excess or redundant skills were collectively recognised in return for the new skills required.
The Board was able to propose a Board for election at the next AGM that not only met all the local requirements (governance rules, laws and regulations) but was also comprised of the right industry skills set and experience to support the organisation in the implementation of its new strategy over the next 3 years. With a culturally cautious and sensitive approach, departing Board Members suffered no loss of face and remained active supporters of the organisation.