Board review is a process through which an organisation’s board of directors may check that it has the capability and commitment to incorporate value to its organization. It also shows the board the chance to catch nascent issues just before they come to be problems.

The goal of a mother board is to collectively direct the company’s affairs whilst meeting the interests of stakeholders (Standards for the purpose of the Table, IoD). This can involve a range of responsibilities that may seem to be contradictory and this need to be judged on a case-by-case basis.

A board can easily rightly delegate some of these activities to senior management, but it should not delegate those that are its sole responsibility or which can legitimately be carried out by a lot more senior person. Often this requires developing a routine of set aside powers which distinguishes the ones activities that needs to be undertaken by board itself and those that needs to be carried out by different members on the senior staff or delegated to another organisation.

APRA-regulated entities need to have procedures pertaining to the 12-monthly assessment of individual Director efficiency and the Board’s performance in accordance with objectives. It might be important that the Board undertakes a review at least every 36 months, and this must be externally caused.

A mother board must examine its interactions and strategy regularly and ensure that it is delivering on the business plan it includes agreed with the CEO. It should take into account the requirements and goals of their different stakeholders and keep pace with enhance its effectiveness and efficiency. It should also consider just how it is interacting with other ALBs and ideal practice inside the industry.