"To be effective new directors need to have a good deal of knowledge about the company and the industry within which it operates". In the light of this statement discuss directors' induction programme in a company.

Directors must have a broad understanding of the area of operation of the company's business, corporate strategy and challenges being faced by the Board. For this purpose the induction procedures should be in place to allow new directors to participate fully and actively in board decision-making at the earliest. In order to discharge their professional obligations efficiently, new directors need to have a good deal of knowledge about the company and the industry within which it operates. It involves introducing the new directors to the people with whom they will be working and explaining how the board operates. It involves building up rapport, trust, and credibility with the other directors so that the new director is accepted by and can work with fellow directors. Common methods of induction include: Briefing papers Internal visits Introductions An induction programme should be available to enable new directors to gain an understanding of: the company's financial, strategic, operational and risk management position the rights, duties and responsibilities of the directors the roles and responsibilities of senior executives the role of board committees. An induction kit should be given to new directors which should contain the following: Memorandum and Articles of Association with a summary of most important provisions Brief history of the company Company's Vision and Mission Statements Current business plan, market analysis and budgets All relevant policies and procedures, such as a policy for obtaining independent professional advice for directors; Protocol, procedures and dress code for Board meetings, general meetings, staff social events, site visits etc including the involvement of partners; Press releases in the last one year Copies of recent press cuttings and articles concerning the company Annual report for last last three years Notes on agenda and Minutes of last six Board meetings Board's meeting schedule and Board committee meeting schedule Description of Board procedures.