Corporate Governance

Section 11 Evaluating board performance and development

Principle

The Board should periodically review its performance, as well as the performance of its board committees and the performance of individual board members. Performance appraisal may include external review and may also identify development needs.

The Board should ensure that it possesses the skills and experience to meet present and future business needs. Ineffective Eirectors (whether Executive or Non-executive) must be identified, supported to become effective and, if that is not possible, replaced. Review, development and mentoring of directors and the wider management team are very important.

It is healthy for membership of the board to be periodically refreshed, regardless of performance issues.

Succession planning is a vital task for Boards. No member of the Board should become indispensable. How well succession is managed (particularly of the chairman and the chief executive) represents a key measure of the effectiveness of a Board.

Compliance

The Board reviews the Company’s and the Investment Manager’s performance on a regular basis.  This includes an assessment of the performance of the Board and whether there is the appropriate skillset within the Board.

As size of the portfolio grows, the Company may look to broaden its skills and experience base by the appointment of additional Directors and/or advisors in due course.