CGF paves way for non-executive directorship posts (2014-05-02)

February 20, 2015  3956  3956   

Advertorial by CGF Research Institute

Little will they realise (or be informed) that their existing skills, experience and qualifications may be exactly what is required for a smaller company’s board of directors, and where they are requested to serve as a Non-executive Director (NeD).  To this extent, there are many smaller companies who cannot afford expensive NeDs on their boards, plus trying to find these individuals is extremely difficult unless the person is ‘connected to the right people’ so to speak.

Being a Non-executive Director

The role of NeDs has changed significantly, particularly considering the recent changes in legislation as well as the recommendations found within the King Code of Governance of 2009 (King III).  Non-executive Directors are considered an essential component of the board of a well-governed company. Unlike executive directors who are the full time employees of the company, NeDs are not employees of the company, nor are they involved in the day-to-day management of the business.  NeDs generally fulfill an ‘oversight’ function to the board of directors, and they are expected to act impartially in order that the overall governance of the company is improved.  Amongst other key duties, NeDs must objectively monitor the performance of the company’s executive management, particularly as it relates to the company’s management achieving the strategic objectives of the company.

Getting prepared

CGF has launched a new governance service that specifically targets managers and puts them ‘through their paces’ to prepare them to become a Non-executive Director.  Through CGF’s renowned Governance Beyond Boards® training intervention, managers who are interested to become NeDs, are provided deep insights to the inner functioning of a boardroom, but more importantly alerted to the broader issues they will need to deal with as it relates to the practical side of governance, risk and compliance.  This training is highly recommended in the ordinary course of a manager’s development.  Moreover, the exposure is also excellent for ensuring that the manager who attends CGF’s training intervention is more prepared for a NeD position and subsequent appointment.

As this is generally very good training and experience for a manager, the manager’s existing company may   well be prepared to pay for this training to improve their manager’s skills for internal promotion.  Understandably, in the event where employers are constrained on their training budget, the 2-day training is not expensive, and therefore the employee can in fact afford the payment of this critical training on their own steam.

Once this training has been completed, CGF provides a specific certificate of attendance to the manager who has attended the Governance Beyond Boards® training intervention.  CGF then automatically includes the delegates of this training as potential candidates for external NeD positions when these appointments become available.

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