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Training for non-execs
 
Dave Marrs Business Day Thursday, January 21, 2010
 
For nonexecutive directors to meet the demands made of them competently and effectively in future, they will need to be provided with a formal induction programme and ongoing training to ensure they have the necessary skills and knowledge.

A review carried out by PricewaterhouseCoopers (PwC) on about 300 annual reports of South African listed companies found that 76% made mention of induction and training for new board entrants in their annual reports, yet only 26% had formal processes in place.

So it appears that induction and training is mainly an in-house process in SA and it is not the norm to bring in outside consultants as in the UK.

However, there is evidence of a trend towards this more formal approach, particularly following the recommendations contained in the King 3 corporate governance report.

It is undoubtedly preferable for directors to be trained by suitable service providers, if only to provide a benchmark of board members’ fundamental responsibilities and duties.

 
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