Updated Guidelines for Government Business Enterprises

Key changes include a target for GBE Boards to comprise at least 40% women by 2015, limitation of directors’ terms to 6 years (9 years for the Chair), regular monitoring of directors’ independence, establishment of a directors’ induction program and code of conduct, annual board evaluations and review of board committee charters, CEO succession planning and more detailed planning and reporting requirements.

Other changes include greater involvement by the Shareholder Minister/s in the planning process, more frequent reporting to the Shareholding Minister/s, publication of the GBE’s annual report on its website, a requirement for directors to inform the Chair immediately should they be placed in a potentially embarrassing position and requirements for GBEs to avoid engaging in aggressive tax planning activities and to apply government workplace relations policy.

The updated Guidelines came into force on 11 October 2011. Currently they do not have statutory force, but the government has indicated that this may change in future.

If you have any enquiries about the new Guidelines or how they affect your organisation, please contact Jayne Staddon of Board Matters on 3511 7988.