ACCA SBL Syllabus B. Governance - Director’s Service Contract - Notes ^{6 / 12}

This should Include:

• key dates

• duties

• remuneration details

• termination provisions (notice

• constraints

• other ‘ordinary’ employment terms

Induction

• Depends on their background  

  It is important, for effective participation in board strategy development, not only for the board to get to know the new director, but also for the director to build relationships with the existing board and employees below board level.

Induction Process

Highly tailored to the individual but will include the following

1. Company structure

2. Company values

3. Company strategy

4. Markets and key players

5. Day to day job details

6. Reporting lines

7. Information about Board operations

It can be given as a presentation by other directors or as an induction pack also

Objectives of CPD

1. Maintain sufficient skills and ability

2. To communicate challenges and changes within the business environment

3. Improve board effectiveness

4. Support personal development of directors