Corporate Governance in NAB Bank
https://ilokabenneth.blogspot.com/2017/04/corporate-governance-in-nab-bank.html
Author: Iloka Benneth Chiemelie
Published: 28th April 2017
Published: 28th April 2017
A review of the company’s corporate
governance statement does indicate that the approaches adopted in 2014 are the
same with what was obtainable in 2015, following similar formats and standards.
This is an indication that the company has a standardized approach in its
corporate governance reporting. In line with NAB bank’s 2015 annual report, the
company’s board is made up of 10 directors that comprises of:
·
9 independent non-executive directors; and
·
One executive director, who is also the managing director and CEO of the
company (NAB Bank, 2015).
Since 2014, a number of changes have been
experienced in the composition of the board and they are:
·
Appointment of Mr Peeyush Gupta in November 2014;
·
Retirement of Mr John Thon and Mr Geoff Tomlinson at the 2014 annual
general meeting;
·
Retirement of Mr John Waller in July of 2015;
·
The appointment of two non-independent
executive directors: Ms Anne Loveridge (with effect from 15th
of December 2015), and Mr Doug McKay (with effect from 1st of
February 2016), and both are subject to the approval of the regulatory body;
·
The retirement of Mr Michael Chaney with Dr Ken Henry transiting to the
chairmanship (which will take effect following the conclusion of the 2015
annual meeting); and
·
The expected retirement of Mr Paul Rizzo at the conclusion of the 2015
annual general meeting (NAB Bank, 2015).
The company adopts ASX corporate governance
principles and recommendation as a measure of its performance in that area. NAB
Bank did comply with the third edition of the ASX corporate governance
principles and recommendation in 2015, with detailed information about their
compliance provided in the appendix 4G of the bank’s annual report; which is
cross-reference checklist used to determine how the company has performed in
line with established guidelines for corporate governance.
The group also has a whistleblower protection
program used to confidentially report unacceptable and undesirable conducts
across the company. This system is established for enabling disclosures to be made
in order to protect the officer making such disclosure by the employees of the
company, or in case where the matter is highly sensitive and the officers do
believe that is more appropriate for such to be directed to the audit
committee.
In line with its guidelines, directors are
expected to adequately prepare for, and attend the board meetings and meetings
of the board committees. It is also expected that directors should attend all
site visits (NAB Bank, 2014 and 2015).
The report of directors is used to set up the number of board meetings
and attendance of the directors, and members of the board are expected to meet
with key regulators across different jurisdictions over the course of the year
in order to ensure that the company applies measures that are in line with
updated industrial standards.
References
NAB Bank (2014). Annual Financial Report.
Available at: https://www.nab.com.au/content/dam/nabrwd/About-Us/2014-annual-financial-report.pdf [Accessed on: 13th-10-2016].
NAB Bank (2015). Annual Financial Report.
Available at: https://www.nab.com.au/content/dam/nabrwd/About-Us/shareholder%20centre/documents/annual-financial-report-2015.pdf [Accessed on: 13th-10-2016].