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| About Board Appointment Service |
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Facilitating Appointment of Board-level Leaders |
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Companies in search of directors at times find it difficult to obtain a satisfactory match. This is especially so with listed companies seeking independent non-executive directors and promising companies looking for enhanced leadership at the board level.
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The Hong Kong Institute of Directors facilitates companies with their search by introducing candidates from the
Board Appointment Candidates Register, maintained by the Institute. This Board Appointment Service helps companies source qualified and suitable independent non-executive directors to fill strategic positions on their boards.
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The Board Appointment Service may be used by any organization intending to strengthen its board leadership. Through this service, the Institute assists listed companies, in particular, to meet the Stock Exchange requirements which call for listed companies to appoint at
least one-third of independent
non-executive directors to their board
by 31 December 2012.
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Venture capital firms and business development funds, which place independent non-executive directors on boards of financed companies in order to help steer their businesses to success, also benefit from this service.
Members of the Institute come from diverse industries and professions and command a wealth of experience in corporate governance. The Hong Kong Institute of Directors is a major source for recruitment of professional directors.
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| On the role
of Non-Executive Directors
The Institute is
of firm belief that non-executive directors
(NED), particularly independent non-executive
directors, can make a valuable contribution to
the boards of companies. Companies are advised
to consider which of the following roles of NED,
in addition to undertaking fiduciary duties,
suit their respective current and likely future
development:-
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"Wise-man"
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bringing
knowledge and experience to the board
and aiding decision-making |
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Specialist |
providing
special skills and expertise to the
board |
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"Window on
the world" |
serving as
the source of external information |
| Judge |
seeing
issues in their totality and providing
objective judgment |
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"Contact
person" |
linking the
board with useful networks,
organizations or individuals |
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Catalyst |
questioning
existing assumptions, introducing new
ideas, stimulating change |
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Ambassador |
representing the company outside. Status
provider bringing standing, credibility
and reputation to the board |
| Monitor |
being an
objective overseer of management; hiring
and firing top managers |
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"Watchdog" |
acting as
an independent voice, eg for minority
shareholders |
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Confidant |
serving as
a sounding-board for the chairman, chief
executive, etc |
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"Safety
valve" |
mediating
in crises in major conflicts between
board members |
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