ࡱ> qspy 2bjbj 0t{{)98J</3RR"tttOOO2222222$47h2OOOOO2tt2sssOFtt2sO2ss.L>2tf1Z220/31~77>27>2\OOsOOOOO22OOO/3OOOO7OOOOOOOOO : Carrying out Due Diligence Prior to Joining a Board Joining a board can and should be a positive and rewarding experience but it also brings with it some risks. Even assuming that there will be personal compatibility and a sharing of common concerns and interests centred on the organisation, there is still the matter of becoming an effective member of the board as a group. Group processes and dynamics can prove difficult to manage and be part of with people often acting out of character when in a group setting. Joining a group can pose a wide range of personal risks. Then there is the matter of decision-making and loyalty to board decisions once reached, even if there is individual disagreement, what risks could be associated with that? And to top off what would be a long list of risks, is the ultimate directorship risk, that every director is jointly and severally liable for the actions and decisions of the board. It becomes imperative therefore that prior to joining a board, a prospective director carries out their own due diligence process to gather as much information about the board, its processes, commitments and its members as can reasonably be gained. With such knowledge acquired and considered, the decision whether or not to join can be made with some assurance about what the newcomer is letting himself or herself in for. What is Due Diligence? The following Due Diligence Checklist provides the intending director with a set of questions that, when answered, will provide data essential for helping the intending director to determine whether or not the board is safe to join. The checklist focuses on many of the primary areas of organisational risk, at least those over which the organisation and the board can exercise a reasonable measure of control. Questions 1 64 should be filled in by the board. The intending director should complete Questions 65 71. THE DUE DILIGENCE CHECKLIST Structural The organisation is incorporated as: An incorporated association A charitable trust Other, please specify The Constitution/Rules/Trust Deed was last reviewed: In the last year 1 5 years ago 6 10 years ago More than 10 years ago Composition of board: Name of directorSpecial governance contribution, e.g. Chairperson, treasurer, financial skills etc where relevant Length of time on the board  There is a Director Retirement/Term in Office policy. ( Yes ( No The maximum term in office a director can hold is _________ yrs The board has a set of Governance Policies that make clear the boards and individual directors role and responsibilities; specifically: PolicyYesNoBoard Role Description/Terms of Reference Board Code of Conduct and Good Practice Conflict of Interests Policy Board Member Induction Policy Chairperson Role Description Board/Director Professional Development Policy Annual Board Effectiveness Evaluation Policy There is a clearly defined CEO Instrument of Delegation or policy that makes clear the nature and extent of the boards delegation to the CEO. ( Yes ( No There is adequate directors liability insurance. ( Yes ( No Size of cover $ Have there been any legal claims against the company in the last 3 years or are there any outstanding or pending claims that may result in board liability? NoYes Type of claim and outcome/impending claim  The CEO is a voting board member. ( Yes ( No Do any board members provide services to the company? ( Yes ( No Who?What services?  Directors are paid. ( Yes ( No If so, how much? __________ How often? __________ On what basis? ( meeting by meeting ( annual payment The board has the following committees: Audit Committee CEO Remuneration and Performance Committee Other please specify ________________________ ________________________ New directors are provided with a formal induction to the board and to the organisation. ( Yes ( No There is a Directors Resource book/manual containing documentation appropriate to the role. ( Yes ( No The board has a written code of ethical practice and monitors its own and its members actions against this at least annually. ( Yes ( No Financial The companys cash position over the previous 13 months has generally been: Very sound and predictable Generally sound but not always predictable Not very sound but predictable Not very sound and unpredictable Very unsound Threatening to our financial viability The CEO regularly presents cash flow analysis and forecasts to the board. ( Yes ( No The company is confident, based on regularly reviewed financial data, that it can meet all of its debts and liabilities, including contingent liabilities, as they fall due, within the coming 12 months. ( Yes ( No Long-term borrowings, e.g. mortgages over buildings, are adequately secured? ( Yes ( No ( Not applicable The board has an Audit and Risk Committee. ( Yes ( No (If No, go on to number 25) Its members are: (Names)Do they have strong financial skills Yes/No  The Audit Committee meets and carries out its duties: Once a year Twice a year Three times or more a year During the last two years, the Audit and Risk Committee has expressed concern to the board about financial matters, e.g. state of finances management: Never Once or twice Many times The companys external auditor is ___________________ Do they provide other general consulting services to the company? ( Yes ( No Length of this relationship __________ The company has an independent external financial advisor. ( Yes ( No The company has an internal audit programme. ( Yes ( No The CEO has clearly stated financial delegation and limitations documented in a policy or in some special document. ( Yes ( No The board is satisfied that it has sound financial systems. ( Yes ( No There are board-developed financial policies in key areas such as Remuneration and Benefits, Financial Management, Protection of Assets, Financial Reporting. ( Yes ( No These policies are reviewed by the board: Annually Once every two years Less frequently than every two years Never The CEOs financial reporting to the board is: Comprehensive and typically meets all the boards requirements Could be improved Unsatisfactory at this stage Typical financial reports to the board include: (tick more than one if appropriate) Balance sheet and P & L account to date Comparisons with previous years accounts and reports Financial ratio reports against board determined benchmarks Trend charts Narrative/written interpretation as appropriate A budget report to date The companys banker is ______________________ The company has reserves that are secured. ( Yes ( No The board has an Investments Policy, e.g. with level of risk stated. ( Yes ( No The board has an overdraft arrangement with the bank. ( Yes ( No The overdraft is used: Rarely Occasionally Regularly The organisations payments are authorised by: The CEO and one or more designated staff members The CEO and one or more designated directors Only designated directors The following have authority to purchase major capital items: The CEO but only within budgeted parameters The CEO at his/her discretion The CEO only with approval of the board The board Day-to-day financial management is carried out by: The CEO A dedicated financial manager An external (outsourced) agent Financial reports for the last two years are enclosed. ( Yes ( No Assets The board has a Protection of Assets Policy . ( Yes ( No It was last reviewed: Within the last year Within the last 2 years More than 2 years ago What are the main asset categories and what are their asset values. Board Meetings Board meetings are held: Monthly Bi-monthly Four times a year Less than four times a year A typical board meeting lasts for: 1 hour or less 1 2 hours 2 3 hours More than 3 hours More than 5 hours What other expectations will there be of me as a director, e.g. committee membership: The main focus of board meetings is on: (tick more than one if relevant) Financial monitoring and CEO reporting Operational decision-making Monitoring (compliance and strategic) Strategic discussion Policy making and review Discussing operational matters/concerns with the CEO and giving approval for action The average attendance by directors at board meetings is: Always 100% Most directors attend most meetings There are always a few absent Some directors are regular non-attenders The agenda is developed by: The board as a whole The CEO The CEO in partnership with the Chairperson The Chairperson Board papers, including all relevant papers and reports, are sent to directors at least a week in advance of board meetings: Always Mostly Only sometimes Strategic Plan There is a strategic plan/corporate plan. ( Yes ( No If Yes, it was last reviewed: Within the last year Within the last two years More than two years ago The status of achievement of the strategic goals in the plan is: Most goals are mostly achieved Some are achieved, a few not yet achieved The plan is too new for any assessment of achievements We have struggled to achieve our goals The CEO reports on the achievement of the strategic goals: At every board meeting At least twice a year Annually Less regularly The board holds an annual strategic retreat: ( Yes ( No CEO/Personnel The qualifications and experience of the CEO are: He/she has been in the role: ____________ (length of time) The board carries out a structured appraisal of the CEOs performance. ( Yes ( No If so, this takes place: Once a year Twice a year More than twice a year Who does this? The board has the following governance-level personnel operational policies: (tick all that apply) Appointment/recruitment procedures and criteria for senior staff Occupational Health and Safety Internal grievance processes Senior staff succession planning Personal Commitment (intending director) I am satisfied that I have all the information I need before accepting/declining directorship of this board. ( Yes ( No I am fully aware of my potential legal liabilities as a director. ( Yes ( No I believe that I will be able to work constructively with this board and this organisation. ( Yes ( No I am satisfied that the organisation has a sound reputation in the community. ( Yes ( No I am satisfied with the abilities of the Chairperson. ( Yes ( No I am sure that I have time to make the level of commitment required to be an effective director of this board. ( Yes ( No I will accept the invitation to join the board. ( Yes ( No     PAGE   PAGE \* MERGEFORMAT 1 | 4  L c 34cgklnopԿԨԖԄԖԖufS@f4hLhCJOJQJaJ%h3 hzsB*CJOJQJaJphT%h3 h WB*CJOJQJaJphThLhhzsCJOJQJaJhLhh#ECJOJQJaJ#hz~^56CJOJQJ\^JaJ#h56CJOJQJ\^JaJ,h3 h#EB*CJOJQJ\^JaJphT)hLhh{;56CJOJQJ\^JaJ)hLhh#E56CJOJQJ\^JaJ,hz~^h#E5B* CJOJQJ^JaJphp4 L c np9JZ & F h^gdedP & F h^gdedP & FgdedP$a$gd#E $a$gdz~^ $a$gdz~^gd{;)xyOPRSTc?@FGghnoFG\]vw}~mntu{ǻǍhLhh{;CJOJQJaJhLhhzs5CJOJQJaJhLhhz~^CJOJQJaJhz~^CJOJQJaJhzsCJOJQJaJ" jqhLhhzsCJOJQJaJhLhCJOJQJaJhLhhzsCJOJQJaJ5Zk*+,^kd$$IflF ," . A 0    4 la$If & FgdedP & F h^gdedP ,-./0123456789:;<=$If=>?@PQRS}}u}u}uppgh^hgdz~^gdz~^ & FgdedPkd$$IflF ," . A 0    4 la ST[_bc=tgggggg & F'$IfgdedPkd*$$IflFBRS0    4 la $$Ifa$ =jklmn  Kefljbjb\jh^h & FgdedPkd$$IflFBRS0    4 la$If & F'$IfgdedP f6789:;<=>?lkdT$$Ifl0,"n04 la$If & FgdedP ?@ABstztt$Ifh^h & F(gdedP & FgdedPlkd$$Ifl0,"n04 la $Iflkdb$$Ifl0,"J 804 laFop||tc & F h^gdedP & F)gdX3h^hh`h & F)gdedPlkd$$Ifl0,"J 804 la myz{7 & F h^gdedP & F$gdX3h`h & F#gdedP ! & F)gdX3^ & F h^gdedP{  '@IWX^_fotu{|"#)*ݿݒ݆wݒhLhhz~^CJOJQJaJhzsCJOJQJaJhLhCJOJQJaJhLhhCJOJQJaJ" jqhLhhCJOJQJaJhCJOJQJaJ" jqhLhhzsCJOJQJaJhLhhzsCJOJQJaJ%h3 hzsB*CJOJQJaJphT.7Xe()$Ifh^hgdz~^ & FgdedP & F$gdX3h^h & F$gdedP & F h^gdedP$Iflkdp$$Ifl0"J 04 la %@Awwwo^^ & F h^gdedP & FgdedP & F h^gdedP & F*gdX3lkd$$Ifl0"J 04 la 01t"./ & F h^gdedP & Fgdz~^h^hh`h & FgdedP & F h^gdedP_"`"f"g""""""""">#f#$$P%Q%W%X%\%]%^%e%%%%%G&L&V&W&ߵߦߖ߃p%h3 h{;B*CJOJQJaJphT%h3 hzsB*CJOJQJaJphThLhhzs;CJOJQJaJhLhhCJOJQJaJhCJOJQJaJhLhh{;CJOJQJaJhz~^h{;CJOJQJaJhLhhzsCJOJQJaJ" jqhLhhzsCJOJQJaJ*   M !8!n!!!!!"0"1"k"l"" & F h^gdedP & F h^gdedP & F&gdedP & F h^gdedP""###"#/#9#:#j#####!$M$k$$$$$ & F h^gdedP & F h^gdedP & F gdedP & F h^gdedP & F&gdedP$$$%%\%]%^%e%f%%%%%%%%A&C&E&F&G&V&h^h ex^e & F h^gdedP & F gdedP & F h^gdedPV&W&p&x&&&&&&&&&' '!'w'y'{'|'}'' ex^e & F h^gdedP & F!gdedP & F h^gdedP & F!gdedPW&p&p'q'{'|'}''' ( (/(0(D(E(((**,*4*5*w*x*y***ȹȞpaN%h3 hzsB*CJOJQJaJphThhzsCJOJQJaJ"hLhhzs56CJOJQJaJhLhhzs6CJOJQJaJhz~^CJOJQJaJhLhhCJOJQJaJhzsCJOJQJaJhLhh{;CJOJQJaJhCJOJQJaJhLhCJOJQJaJhLhhzsCJOJQJaJhLhhzs5CJOJQJaJ'' (0(E(^((((()=)f)g)))))))[* & F h^gdedP & F h^gdedP & F!gdedP & F h^gdedP[*b*i*x*y*******+'+(+i++++,, & F h^gdedP & F"gdedP & F h^gdedP & F!gdedP & F h^gd & F h^gdedP****,,,,,,,,----/"/#/8///////00g0h0n0o00000 1 111111111111߭||||||||||||ߎ|" jqhLhh0bCJOJQJaJhLhh0bCJOJQJaJhz~^h0b56CJOJQJ%h3 h0bB*CJOJQJaJphT%h3 hzsB*CJOJQJaJphThz~^CJOJQJaJhLhhzsCJOJQJaJ" jqhLhhzsCJOJQJaJ0,L,c,y,,,,,,,,,----V-W------ & F h^gdedP ex^e & F h^gdedP & F"gdedP---. . .n.... ///#/8/9///00s0gd0bgd0b & F h^gdedP & F%gdedP ex^e & F"gdedP ! & F h^gdedPs0t00011111111111111111122 $h]ha$gdLh $dNh]h&`#$ & F%gdedPgd0b1111111111111111122 2 222222ÿ"h Whn6CJOJQJ]^J hLh5hz~^hz~^5mHnHuhLhjhLhUhn hn0Jjhn0JUh3 jh3 UhLhh0bCJOJQJaJ" jqhLhh0bCJOJQJaJ2222.:pz~^/ =!"#$% $$If!vh#v #v. #vA :V l05 5. 5A 4a$$If!vh#v #v. #vA :V l05 5. 5A 4a$$If!vh#v#vR#vS:V l055R5S4a$$If!vh#v#vR#vS:V l055R5S4a$$If!vh#vn#v:V l05n54a$$If!vh#vn#v:V l05n54a$$If!vh#vJ #v8:V l05J 584a$$If!vh#vJ #v8:V l05J 584a$$If!vh#vJ #v:V l05J 54a$$If!vh#vJ #v:V l05J 54a^ 666666666vvvvvvvvv666666>6666666666666666666666666666666666666666666666666hH6666666666666666666666666666666666666666666666666666666666666666662 0@P`p2( 0@P`p 0@P`p 0@P`p 0@P`p 0@P`p 0@P`p8XV~_HmH nH sH tH <`< NormalCJ_HmH sH tH 8@8  Heading 1$@&5DA`D Default Paragraph FontVi@V  Table Normal :V 44 la (k (No List 2>@2 Title$a$5;JOJ Main%5@PCJOJQJhmH sH tH uDOD Sub!5@POJQJhmH sH tH u`C@"` Body Text Indent7xx^7OJQJmH sH u4 @24 0Footer  !.)@A. Page Number<B@R< Body Text56OJQJ4b4 WHeader  !8O8 #E First paraCJh0O0 #Esub 5CJ\h>o> Lh0 Footer CharCJmH sH tH @@@ z~^ List Paragraph ^PK![Content_Types].xmlN0EH-J@%ǎǢ|ș$زULTB l,3;rØJB+$G]7O٭V$ !)O^rC$y@/yH*񄴽)޵߻UDb`}"qۋJחX^)I`nEp)liV[]1M<OP6r=zgbIguSebORD۫qu gZo~ٺlAplxpT0+[}`jzAV2Fi@qv֬5\|ʜ̭NleXdsjcs7f W+Ն7`g ȘJj|h(KD- dXiJ؇(x$( :;˹! I_TS 1?E??ZBΪmU/?~xY'y5g&΋/ɋ>GMGeD3Vq%'#q$8K)fw9:ĵ x}rxwr:\TZaG*y8IjbRc|XŻǿI u3KGnD1NIBs RuK>V.EL+M2#'fi ~V vl{u8zH *:(W☕ ~JTe\O*tHGHY}KNP*ݾ˦TѼ9/#A7qZ$*c?qUnwN%Oi4 =3N)cbJ uV4(Tn 7_?m-ٛ{UBwznʜ"Z xJZp; {/<P;,)''KQk5qpN8KGbe Sd̛\17 pa>SR! 3K4'+rzQ TTIIvt]Kc⫲K#v5+|D~O@%\w_nN[L9KqgVhn R!y+Un;*&/HrT >>\ t=.Tġ S; Z~!P9giCڧ!# B,;X=ۻ,I2UWV9$lk=Aj;{AP79|s*Y;̠[MCۿhf]o{oY=1kyVV5E8Vk+֜\80X4D)!!?*|fv u"xA@T_q64)kڬuV7 t '%;i9s9x,ڎ-45xd8?ǘd/Y|t &LILJ`& -Gt/PK! ѐ'theme/theme/_rels/themeManager.xml.relsM 0wooӺ&݈Э5 6?$Q ,.aic21h:qm@RN;d`o7gK(M&$R(.1r'JЊT8V"AȻHu}|$b{P8g/]QAsم(#L[PK-![Content_Types].xmlPK-!֧6 0_rels/.relsPK-!kytheme/theme/themeManager.xmlPK-!0C)theme/theme/theme1.xmlPK-! ѐ' theme/theme/_rels/themeManager.xml.relsPK] *t 888;{W&*12',148Z,=S=f?7"$V&'[*,-s022 !"#$%&()*+-./0235679 /1;!!8@0(  B S  ?)))))))))** 46HO$'-')))))))))**33333cc34fgkl%')O R zz'@Ifo>f]]LLpq{| / D w"w"$$))))) ***cc34[dfgkl%')O R zz'@Ifo>f]]LLpq{| / D w"w"$$))))) ****QUf8CO( uԸ?U( U X 'U: TE:tUU2 #p^#UV7$U]u%UG*&Fn>F5'Ui.U%#6U?- :Ut>;UT&JUu~Llj/`"wM ֨dMU8NhC"YU+g_U`BRbU]d dUrf.Z;iUJ4p.Qp(p=drU4rvU&w!wUkxa8yUxIhh^h`CJOJQJo(qhh^h`.hh^h`.hh^h`.hh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`.hh^h`CJOJQJo(q hh^h`.hh^h`CJOJQJo(qhh^h`CJOJQJo(q! hh^h`o(hH.hh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`CJOJQJo(q hh^h`o(hH.hh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`CJOJQJo(q hh^h`./ hh^h`o(hH.hh^h`CJOJQJo(q hh^h`o(hH. ^`hH. pL^p`LhH. @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PL^P`LhH.hh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`.hh^h`CJOJQJo(q hh^h`OJQJo(hh^h`CJOJQJo(q hh^h`.hh^h`CJOJQJo(qhh^h`.@ hh^h`o(hH.hh^h`CJOJQJo(qhh^h`CJOJQJo(qhh^h`CJOJQJo(q8 hh^h`o(hH.hh^h`CJOJQJo(q( hh^h`o(hH.*BRbi.F5'p=dr%#64rv&w!w?- :( ?]u%t>;:t8ydMT&Jd;i+g_^#C"YQV7$ 'uJ4p: CO` x`"wMkxfG*&.Qp2 #]du~Lrf8N**fnHa        3 X3edPz~^LhU|n0bzs{;#E@ W>!))@$$$$*@UnknownG*Ax Times New Roman5Symbol3. *Cx Arial7.@ Calibri;WingdingsABook AntiquaA$BCambria Math"hsG wD# K># K)24))3QHX?0b2)!xx  GTA projectTerry Kilmisterjohnp*                           ! " # $ % & ' ( ) Oh+'0x  ( 4 @ LX`hp GTA projectTerry KilmisterNormaljohnp3Microsoft Office Word@@RM@A@I9y@ >#՜.+,0  hp  Boardworks InternationalK)  GTA project Title  !"#$%&'()*+,-./0123456789:<=>?@ABDEFGHIJKLMNOPQRSTUVWXYZ[\]^_abcdefgijklmnorRoot Entry F tData ;1TableC8WordDocument0tSummaryInformation(`DocumentSummaryInformation8hCompObjr  F Microsoft Word 97-2003 Document MSWordDocWord.Document.89q