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As with any other key position in the company, it is very important to acquaint the new director with company processes, board rules and regulations and his detailed responsibilities. It is however noted that this process is not properly laid down in many companies. The CG Code has recommended that a formal orientation and induction training program should be adopted by the Board for each new director.

CG Code – Principle 1.1: When a new director is inducted, the chairman of the board, assisted by company legal counsel or compliance officer, should review the board’s role and duties with that person, particularly covering legal and regulatory requirements and this Code.

The above is also mandated by CBB vide CBB Rulebook: HC-4.5

The chairman of the board should ensure that each new director receives a formal and tailored induction to ensure his contribution to the board from the beginning of his term. The induction should include:

•Meetings with senior management

•Visits to company facilities

•Presentations regarding strategic plans

•Significant financial, accounting and risk management issues,

•Compliance programs

•Meetings with internal and independent auditors, and legal counsel

It is advisable that all continuing directors should be invited to attend orientation meetings and all directors should continually educate themselves as to the company’s business and corporate governance.

In addition to induction training, it is also recommended that periodic refresher courses or presentations should be arranged for directors so that the directors may keep themselves abreast with latest developments in the field of company’s business. This is also mandated by the CG Code.

CG Code – Principle 4.5: Management, in consultation with chairman of the board, should hold programs and presentations to directors respecting the company’s business and industry, which may include periodic attendance at conferences and management meetings. The Nomination Committee shall oversee directors’ corporate governance educational activities.

In order to help board members acquire, maintain and deepen their knowledge and skills and to fulfill their responsibilities, the board should ensure that board members have access to programs of tailored initial and ongoing education on relevant issues. The board should dedicate sufficient time, budget and other resources for this purpose. (Basel Committee on Banking Supervision: Principles for Enhancing Corporate Governance, 2010)