Mandatory governance courses

Board appointees without prior experience need to take mandatory governance courses during their initial ap­pointment, business leader Mark Halabe said.

The goal of boards was to drive commercial success and maintain the long-term strategic viability of these key entities, he said.

"While a strict corporate curricu­lum vitae is preferable, we must also acknowledge that some appointees may possess vital sectoral knowledge or strategic insights that contribute to the board's di­versity and effectiveness.

His comments followed queries over the qualification and expe­rience of directors appointed to State-owned entities and public companies.

"For those appointed who may lack prior board experience, this can and should be remedied by experience and mandatory govern­ance courses undertaken during their initial appointments.

"This is essential for building our national resource pool of skilled directors and ensuring they meet their fiduciary duties."

Directors of State-owned enter­prises were appointed by the rel-evant minister. The process was driven by the minister's requirement for individ­uals who have their confidence to perform their duties as independ­ent directors for the benefit of the company and, crucially, the public shareholders.

n "The concern over non-qualified persons" being appointed is often a matter of opinion," Mr Halabe said.