Nigerian code of corporate governance 2018

that serving as a Director for years does not obviate the need for periodic training given the dynamics of the operating environment. Emerging trends including Cybersecurity, Artificial Intelligence, Blockchain,the future of work, etc. should remain top-of-mind for Directors and periodic training on these is imperative. The Board also needs to keep abreast of new legislation, regulatory requirements and guidelines to give appropriate context to its oversight responsibilities. Thus, it is appropriate to facilitate a targeted Board Training when new guidelines or regulations are issued that will impact the organization’s operations or processes.

The Code further recommends that the outcome of the performance evaluation of the individual Directors should be taken into account in developing Board training programmes. If effectively administered and delivered, the Board and Director performance appraisal typically identifies knowledge gaps of individual Directors or indeed the entire Board that can be bridged by specific training. The Chairman and Company Secretary are also well placed to identify the development areas of the Board and individual directors and as such recommend appropriate training. To ensure maximum participation, it is good practice to identify suitable training for the year in good time to enable Directors diarize and plan to attend.

The Code recommends that Director Development programmes should be at the Company’s expense but should not be such that put undue strain on the Company’s finances. This recommendation clearly underscores the proprietary of affordability from the Company’s perspective. Thus setting a benchmark of “annual foreign training entitlement” per Director as is the case in some organizations, without due regard to the financial capability of the Company, relevance and expected outcome, is not in the best interest of the enterprise and not in sync with the Directors’ fiduciary responsibilities. The training needs of the Board and individual Directors, affordability and value addition should be primary considerations in developing a robust Director Development Programme.