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Getting board appointments right - Trinidad and Tobago Newsday

THE EDITOR: Given our current local and global landscape, the appointment of directors to state boards, is of critical importance.

The significance of state enterprises to a government’s work cannot be overstated and should be given the highest regard and attention.

As the former corporate secretary of a state entity, I have worked closely with directors of varied personalities, skills and experiences and can categorically state that any organisation’s ability to realise its mandate is largely dependent on the quality and performance of its board.

People selected to serve on state boards have a fiduciary duty to the organisation they are called upon to serve. Therefore, it is imperative that round pegs are placed into round holes.

I suggest the government consider the following recommendations during the appointment process:

* Establish committees within various ministries dedicated to identifying and selecting the right people to serve as directors under their jurisdiction and make appropriate recommendations to cabinet.

* Determine the specific skills needed for the particular State body, whether enshrined in statute or based on good sound judgment. Assistance on the campaign trail, family relations and friendships are insufficient criteria. Soft skills are often overlooked but are necessary.

* Consider publicly inviting applications to serve.

* Conduct due diligence exercises to verify information given by prospective candidates, including but not limited to interviews and verification with universities.

* Give due consideration to the character and reputation of the individual. While technical qualifications and experience are important, a sound reputation based on honesty and integrity is invaluable.

* Ensure the chairman is an effective leader, able to motivate and inspire. Given the importance of the chairman to the performance of the board and the organisation, special care and attention should be given to this position.

* Appoint apolitical people to bring objectivity and constructive challenge.

* Appoint people to represent the organisation’s workers so they have a voice in the board room.

* Ensure the board is diverse and balanced in gender, age, ethnicity, skills and experience.

* Stagger directors’ terms to allow for continuity in the event of a change in administration.

There is a chance that boards that appear structurally sound are formed, yet they underperform due to the poor qualities of the chairman, poor bard dynamics or a disproportionate balance of power between the board and executive management.

Whatever the reason, it’s very important to ensure that the relevant reporting ministries properly oversee the performance of their boards and insist on annual board evaluation exercises.

Last October, a new Corporate Governance Code for TT was launched. It contains critical guidance, particularly in the area of building an effective board, that will be beneficial to the government at this time.

While it is not written into law but instead lays out a set of volun

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