Case Studies
“How can we establish strong governance practice in a newly formed trust?”
The Issue
A Trust had been formed pursuant to a statute and was charged with managing the assets of a widespread group of unnamed beneficiaries. The Trustees were appointed on the basis of their reputation amongst beneficiaries, but for trustees, despite their outstanding record of achievements in various spheres, this venture into managing the resources of others was a first.
There was considerable anxiety about the forbidding nature of the law in this area, the liabilities which seemed to attach to their new positions and uncertainty about what was expected of them and what they could do about it.
Our Approach
TBPL took a two pronged approach involving a combination of training and establishing governance protocols. Seminars were held to demystify the law and explain it in terms of these particular trustees, their beneficiaries, the resources to be managed and the tools at their disposal.
Secondly, a code of values was jointly developed to provide comfort and guidance for trustees and beneficiaries along with a code of practice to guide decision-making in vital areas such as conflict of interest management and financial reporting.
The Outcome
While demanding and at times presenting significant challenges, the joint training and process development programme enabled trustees to move their board to a position where it was able to develop and have mandated a series of submissions to a relevant government department, establish an approved strategic plan and set some performance targets by which the board and beneficiaries could measure progress.
“How can we ensure that our governance meets best practice?”
The Issue
The newly appointed Chair to a major New Zealand Trust requested an audit of all governance procedures to ensure the Board was meeting best practice.
Our Approach
All processes and documentation was reviewed by The Boardroom Practice, with particular emphasis given to conformance and monitoring. A comprehensive Board evaluation articulated best practice standards at all levels of the Trust.
The Outcome
Clear areas were identified for governance improvement and The Boardroom Practice is now working with the Trust to develop further best practice protocols. The Chairman has greater confidence that the Board is aware of and fulfilling its legal obligations and responsibilities.
“How can we effectively induct new Trustees?”
The Issue
The constitution of a significant Trust required that significant numbers of new Trustees join the Trust on an annual basis. The Chairman felt that productivity was hindered by the fact that new Trustees lacked an understanding of the Trust and their obligations as Trustees.
Our Approach
The Boardroom Practice developed a specific programme for new Trustees covering not only the obligations of Trustees but also how this particular Trust Board worked. We also mentored some of the new Trustees in managing the personalities and issues related to the Trust.
The Outcome
New Trustees joining the Board transitioned into the new environment more smoothly and the Trust was able to continue its work in a more cohesive manner.