23
GRAND BANKS YACHTS LIMITED
ANNUAL REPORT
2016
CORPORATE GOVERNANCE REPORT
Board Performance
Principle 5:
There should be a formal annual assessment of the effectiveness of the Board as a whole and its Board
Committees and the contribution by each director to the effectiveness of the Board.
Guidelines Of The Code
Grand Banks Corporate Governance Practices
5.1 Every Board should implement a process to be carried out
by the NC for assessing the effectiveness of the Board as
a whole and its board committees and for assessing the
contribution by the Chairman and each individual director
to the effectiveness of the Board. The Board should state
in the company’s Annual Report how the assessment of
the Board, its board committees and each director has
been conducted. If an external facilitator has been used,
the Board should disclose in the Company’s Annual Report
whether the external facilitator has any other connection
with the company or any of its directors. This assessment
process should be disclosed in the company’s Annual
Report.
The NC assesses the effectiveness of the Board as a
whole and the contribution of each individual director to
the effectiveness of the Board. It does so by requiring all
Directors to complete a board evaluation to seek their
view on Board performance and effectiveness as well
as areas for improvement. The NC periodically engages
external consultants to help in this evaluation process.
The Board is satisfied that it has met its performance
and effectiveness objectives.
5.2 The NC should decide how the Board’s performance may
be evaluated and propose objective performance criteria.
Such performance criteria, which allow for comparison
with industry peers, should be approved by the Board
and address how the Board has enhanced long-term
shareholder value.
Please refer to the Group’s practices in Guideline 5.1.
5.3 Individual evaluation should aim to assess whether each
director continues to contribute effectively and demonstrate
commitment to the role (including commitment of time for
meetings of the Board and Board Committees, and any
other duties). The Chairman should act on the results of
the performance evaluation, and, in conclusion with the NC,
propose, where appropriate, new members to be appointed
to the Board or seek the resignation of directors.
Please refer to the Group’s practices in Guideline 5.1.
The replacement of a director, when it occurs, does
not necessarily reflect the director’s performance, but
may be driven by the need to align the Board with the
needs of the Group.
