|The Board undertakes a formal annual assessment of its effectiveness as a whole, and that of each of its board committees and individual directors.|
For any group to be effective and improve, appropriate feedback is critical. A formal annual process that assesses the effectiveness of the Board and its directors helps it to determine how it can be structured and function better so that it can and continue to be, an effective Board.
To this end, guidance is provided on:
- The assessment process for the Board, the Board Committees and each director (Provision 5.1).
- The required disclosures about how the assessments have been conducted (Provision 5.2).
The NC recommends for the Board’s approval the objective performance criteria and process for the evaluation of the effectiveness of the Board as a whole, and of each board committee separately, as well as the contribution by the Chairman and each individual director to the Board.
The company discloses in its annual report how the assessments of the Board, its board committees and each director have been conducted, including the identity of any external facilitator and its connection, if any, with the company or any of its directors.