NZ Shareholders Members Area

NZSA Policy Statements

Board Composition

Background

NZSA supports voluntary change rather than imposed quotas in matters such as the proportion of women on public company boards. NZSA would expect that by improving board composition in terms of relevant areas of experience and expertise there would be an increase in the percentage of women on public company boards given women's representation in the professions and industries.

The NZSA Position

  1. The composition of a board should reflect the nature of the business' operations (manufacturing, service, technology, import, export, retail, wholesale, infrastructure, size, complexity) and its strategic priorities.
  2. Skills, experience and ability remain the essential attributes but clearly board composition would vary from organisation to organisation.
  3. All boards should include genuinely independent directors with the experience and willingness to bring an independent view to bear on all key decisions.
  4. There must be a regular review of the composition of a board to formally assess the appropriate mix of expertise, experience and independence to meet the organisation's objectives. The results of this review should be published in annual reports.

November 2011