- Title page
- 1: Relationships, roles and responsibilities
- 2 : Appointing and maintaining an effective board
- Board appointment roles
- Reappointment of board members
- Confirming and announcing appointments
- Post-appointment induction and training
- Removal from office
- Fees for board members
- Crown agents and Autonomous Crown entities, excluding corporations sole
- Independent Crown entities and corporations sole
- Summary of levers for appointing and maintaining an effective board
- 3: Participating in setting the expectations and direction for entities
- 4: How can your monitoring department assist you?
- Appendix 1: How Crown entities fit into the public sector
- Appendix 2: Information for Crown entity companies
2 : Appointing and maintaining an effective board
Crown entities are established at 'arm's-length' from Ministers where decision-making needs to be, and be seen to be, independent from Ministers. Furthermore, Crown entity governance boards can provide Ministers with access to a broader range of skills. Assembling an appropriate mix of board skills and experience has a considerable impact on board performance. Therefore, one of the most important decisions you can make in relation to a Crown entity is the set of expertise you appoint to the board.
Board appointments are a very important way in which you influence the performance and strategic direction of a Crown entity. Every board vacancy creates an opportunity to reassess the needs of an entity, and the skills and experience that would best complement the talents of the other board members. A good recruitment and appointment process and well supported decisions on possible reappointment are critical to ensuring effective members are appointed to boards.
An effective board will provide good governance of the entity, engage with the Minister on strategic direction and performance issues, work cooperatively with the monitoring department, and take opportunities to work with others to improve public services. An effective board will:
- have members with the competencies (e.g. leadership and professional and sector-specific skills) needed to understand the entity's purpose and functions
- help the entity articulate and achieve its strategic direction and targets
- understand the environment within which it performs its duties
- work well as a collective, with the chair getting members to work as a team
- recognise the importance of collaborating effectively with related departments, and the relevant public agencies, and
- select and mentor an appropriate skilled chief executive.
Alongside the information contained in this section, further detail on the processes for board appointments and induction is contained in the Board Appointment and Induction Guidelines (BAIG). The BAIG also contains additional information on the management and disclosure of conflicts of interest, board member induction, and the process to follow for appointment/reappointment.
: Available at www.ssc.govt.nz/board-appointment-guidelines.