How Boards
Work

• Recruiting directors/trustees
  • Letter of appointment
• The chair
• Committees for specific tasks
  • Terms of Reference for an audit committee
• Managing meetings
• Managing board dynamics
• Using outside experts
  • Outside experts policy
• Board self-evaluation

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Example letter of appointment for directors/trustees [DOC, 0.09MB]

Letter of appointment

The actual process of appointing a new director or trustee is likely to be set out in the constitution or trust deed. Once a new director/trustee is appointed or elected, the chair should send a formal letter of appointment setting out what is expected.

Key points to include are:

• The term of appointment
• The obligations of directors/trustees
• Times of board meetings and the time commitment required in preparation and attendance
• Fees, if any are to be paid to the director/trustee
• Criteria and process for reimbursement of expenses
• The evaluation process for directors/trustees
• Ask to be informed of potential conflicts of interest in other activities or directorships
• The induction process
• The process for getting independent advice
• Liability insurance — if this is relevant
• Confidentiality
• Acknowledgement of receipt of the letter

See an example of a letter of appointment.