Principle 13: Induction and continuing education for directors

Arobust onboarding programme for new Directors is imperative for a smooth integration to the Board and an understanding of the business of the Company. Principle 13 of the Nigerian Code of Corporate Governance 2018 (“the Code”, “NCCG Code”) provides that “A formal induction programme on joining the Board as well as regular training assists Directors to effectively discharge their duties to the Company.”

A formal Induction programme is a planned event to introduce new entrants into a system, place or organization.whilst many organizations have an informal process of induction in place, it is important to ensure that such process is formalized to provide consistency in the approach and information provided to new Board members as they take up their roles. It is required that the induction should focus on familiarizing the new directors with the Company’s strategic plan, operations, business environment, Senior Management, and the Directors’ fiduciary responsibilities.

There is an assumption that “experienced” Directors do not require an induction as they have “seen it all”. For those experienced Directors, a refresher on their duties and responsibilities is always useful given the emerging trends in Board leadership and the peculiarity of regulatory requirements

of each business sector.thus, the induction package should include a discussion on the expectations of the role, the regulatory landscape within which the business operates, the governance structure of the organization, Board policies and a high-level introduction to the business of the Company. The induction should also provide new Directors an opportunity to meet with Senior Management and where appropriate, visitsto the Company’s operational locations should be incorporated into the onboarding programme.

The Board Chair working with the Company Secretary should ensure that new Directors go through the induction process as soon as possible after their appointment. It is good practice for the Chairman to sit through the induction programme so that he/she can provide practical guidance and insights as well as such clarification as shall be required. The onboarding session should also incorporate some informal interaction to give new Directors a “feel” of organizational culture.

The Code also recommends that all Directors should participate in periodic, relevant, continuing education programmes to update their knowledge and skills and keep them informed of new developments in the Company’s business and operating environment. This emphasizes the point