The Institute of Directors in New Zealand (Inc) promotes excellence in corporate governance, represents directors’ interests and facilitates their professional development through education and governance training.
All Directors Inc associates must be members of the Institute of Directors.
The IoD, as the professional body for boards and board members in New Zealand, believes that creating and adding value should underpin all governance practice. In their comprehensive reference guide, “The Four Pillars of Governance Best Practice”, the IoD outline high level principles of best practice, provide practical guidance on day to day issues facing directors and interpretation of the legislation affecting directors.
These four pillars act like a compass for all directors and boards. So what are they?
- Determining purpose. This is about the board driving and leading the development of the organisations purpose, strategic direction, and goals.
- An effective governance culture. The board must act like a team, and work with management to achieve the organisations purpose, as well as maintaining effective relationships with shareholders and stakeholders. Value comes from the debate and thoughtful discussions that occur within a diverse team.
- Holding to account. A value adding board ensures management are held accountable to deliver against the organisations strategy by providing informed, astute and effective oversight. Board and management responsibilities are clearly defined.
- Effective compliance. The board ensures the integrity of financial reports and processes and that the company remains solvent, meets all legal and financial requirements, and is managing existing and prospective risks.
Any guidance Directors Inc will give will be based around these Four Pillars. Should you be interested in learning more, join the Institute of Directors, and you will receive a free copy of this useful reference (also available to members on the IoD website), which includes lots of practical information to assist you in meeting each of the four pillars.