Engaging an independent reviewer injects objectivity and fresh insights into the evaluation process, facilitating the identification of any pertinent issues that require attention.
The purpose of the Board Effectiveness evaluation process is multifaceted. Firstly, it seeks to assess the Board’s composition and diversity while ensuring the collective possession of the requisite knowledge and expertise to effectively govern the business. Additionally, this exercise extends to reviewing the composition, effectiveness, and functionality of the Board’s committees.
Formal Board Effectiveness reviews should be conducted at regular intervals. While some jurisdictions grant the Board the discretion to determine the evaluation cycle, the norm is to complete these assessments annually or in response to resignations and vacancy fillings. Notably, specific regulations may prescribe the required evaluation frequency; for instance, the UK Corporate Governance Code mandates an annual evaluation.
The conduct of Board assessments can take two primary approaches. It can be handled internally by an independent party, such as the Company Secretary, or, as preferred by many regulators, entrusted to an external provider like Virteffic, with support from the Company Secretary. Engaging an independent reviewer injects objectivity and fresh insights into the evaluation process, facilitating the identification of any pertinent issues that require attention.
Typically, Board assessments are scheduled to be completed on an annual basis, forming an integral part of the company’s yearly obligations.
How Virteffic can help your Board
Virteffic can assist your Board in its pursuit of continuous improvement. Our services are characterised by flexibility and tailored solutions, including options like one-on-one interviews and comprehensive questionnaires. For clients with whom we have established a longer relationship, we also offer the alternative of observational reviews.
Do you want Virteffic to help your Board with an independent effectiveness review?
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Virteffic Limited (“Virteffic“) is not regulated or licensed under the Financial Services (Jersey) Law 1998, as amended (the “Financial Services Law“). Accordingly, Virteffic does not provide any regulated services and does not engage in any regulated activities that would necessitate us to be a “registered person” as defined under the Financial Services Law. In cases where a regulated activity is required, you will need to engage the services of a firm that is registered under the Financial Services Law to provide such services. Virteffic may offer certain secretarial support and administration services as a virtual assistant, however, the services are of an administrative nature only. Your appointed company secretary and/or the directors of your company have full responsibility to ensure the accuracy of the work that Virteffic does for you, to have the final sign-off and to check the work before it is released, published and/or executed.