5
Recommendation
Seventh Report - The Role of Non-Execut…
Deferred
The Rt. Hon. Lord Maude of Horsham should take into consideration the conclusions and recommendations of this inquiry into his final report for the Review of Governance and Accountability. The Government should prioritise publishing the findings of the Review within two weeks of it being delivered to provide public reassurance …
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The Rt. Hon. Lord Maude of Horsham should take into consideration the conclusions and recommendations of this inquiry into his final report for the Review of Governance and Accountability. The Government should prioritise publishing the findings of the Review within two weeks of it being delivered to provide public reassurance on the roles of NEDs and how they should be performed. (Paragraph 22) Expertise and experience
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Government response AI summary
The government stated it would consider the recommendations from the Review of Governance and Accountability once it has been published and respond in due course.
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17
Recommendation
Seventh Report - The Role of Non-Execut…
Deferred
The consensus from oral witnesses to the inquiry, including the current Government Lead Non-Executive, was that NEDs and boards have a role to play in providing continuity and corporate memory between new Ministers and administrations. While we recognise that the Secretary of State maintains the final decision over the composition …
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The consensus from oral witnesses to the inquiry, including the current Government Lead Non-Executive, was that NEDs and boards have a role to play in providing continuity and corporate memory between new Ministers and administrations. While we recognise that the Secretary of State maintains the final decision over the composition of their board, there should nonetheless be a presumption against the automatic removal of all serving non-executive board members upon appointment. An updated Corporate Governance Code should set out the value of NEDs in providing corporate memory and expertise in periods of transition between Ministers and administrations, and the expectation that Ministers should avoid replacing all departmental NEDs on appointment. Moreover, it should clarify that if they do so, departments must set out the reasons justifying their decision in the governance statements of departments’ annual reports.
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Government response AI summary
The government states it will consider amending the Corporate Governance Code to include provisions on the removal of departmental NEDs, taking into account the committee's recommendations and other reports, while affirming ministerial discretion.
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20
Conclusion
Seventh Report - The Role of Non-Execut…
Deferred
The Government Lead Non-Executive should provide a report on compliance with the Corporate Governance Code in the Government Lead Non-Executive Annual Report. This would cover all aspects of the Code, such as attendance at board meetings, whether fair and open recruitment practices have been followed, the management of conflicts of …
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The Government Lead Non-Executive should provide a report on compliance with the Corporate Governance Code in the Government Lead Non-Executive Annual Report. This would cover all aspects of the Code, such as attendance at board meetings, whether fair and open recruitment practices have been followed, the management of conflicts of interest, and whether board effectiveness evaluations have been carried out. Information should be broken down by department and departments should also justify any departures from the Code in the governance statements of their annual report and accounts. (Paragraph 70) The Role of Non-Executive Directors in Government 37
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Government response AI summary
The government agrees there are benefits to publishing NEBM roles and responsibilities but does not commit to providing a report on Corporate Governance Code compliance or departmental justifications for departures. It notes its commitment to review NED roles is part of the overdue Lord Maude’s …
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