Source · Select Committees · Public Administration and Constitutional Affairs Committee
Seventh Report - The Role of Non-Executive Directors in Government
Public Administration and Constitutional Affairs Committee
HC 318
Published 20 June 2023
Recommendations
12
Accepted
Para 51
Ensure full departmental transparency in NED recruitment and require prompt publication of appointment details.
Recommendation
The Government Lead Non-Executive should ensure that every department is fully transparent about the recruitment process for its NEDs and that all departures from the Corporate Governance Code are justified in the governance statements of departments’ annual report and accounts. …
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Government Response Summary
The government stated that existing processes address transparency, with departures from the Corporate Governance Code disclosed in annual reports, appointments announced on GOV.UK pages, and adverts published on the Cabinet Office website detailing the process.
26
Accepted
Subject the Government Lead Non-Executive to direct parliamentary scrutiny and oversight
Recommendation
The Committee acknowledges the arguments against NEDs being formally accountable to Parliament for any departmental or policy-specific matters, given the potential implications for the principle of ministerial responsibility. However, we believe that the Government Lead Non-Executive, as a quasi-regulator and …
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Government Response Summary
The government does not agree with the committee's characterisation of the Government Lead Non-Executive as a quasi-regulator, but notes that GLNEDs have historically appeared before the committee and will continue to make themselves available for scrutiny.
Conclusions (2)
11
Conclusion
Accepted
Para 50
The Corporate Governance Code stipulates that non-executive board members should be appointed on merit through a fair and open process. The current Government Lead Non-Executive told the Committee that a small proportion of NEDs currently in post have been directly appointed and, since he took on the The Role of …
Government Response Summary
The government states that all NEBM appointments now comply with the Governance Code, ensuring transparency and consistency through public appointment processes. They agree that Code departures should be reported and will consider summarising these in the Government Lead Non-Executive's annual report.
14
Conclusion
Accepted
Para 53
The Government has indicated that it will implement the Committee on Standards in Public Life’s (CSPL) recommendation that NED appointments should be regulated by the Commissioner for Public Appointments, which we welcome. However, it is disappointing that it appears no progress has been made since the CSPL report was published …
Government Response Summary
The government confirms it has met the commitment by updating the Public Appointments Order in Council 2023, which now includes the regulation of non-executive directors to ministerial department boards by the Commissioner for Public Appointments.