What kind of governance structures do you have in your business now and what role do they play in the business?
We have a board with three directors: two external non-executive directors - Peter Schuyt and Victoria Carter - and myself. The external directors are professional directors with a wide range of experience, including numerous public company directorships. In addition, we have an advisory board with three external advisers. Further to this, our business operation involves Guardian Trust as a custodial trustee for client funds.
Can you tell me a bit about how your governance has developed over the years?
Tax Management New Zealand started 11 years ago and has grown steadily over that time to having 14 employees today. Our governance and management structure has evolved through three phases: from just an advisory board and myself as managing director; to a general manager with myself as the sole director; to our current structure with a CEO, Chris Cunniffe, and a board of three directors.
What have been the motivating factors for instituting governance in your business and how did you go about putting these structures in place?
There are a number of motivating factors that drive our current governance structure. It gives our clients confidence having external directors responsible for the company's operation; the directors bring their expertise, perspective and networks to the business; it gives a broad governance framework for the CEO to be accountable to; and it also helps hold me accountable to operate as a director rather than an agent in the business.
We also have an advisory board with Sir Ralph Norris, Rob McLeod and David McLay that provides a broad perspective on trends and opportunities.
In putting our board in place, we took advice on the composition and structure from a governance consultant, Simon Telfer.
What impact has the governance you've put in place had on your business?
The board has set the direction and strategy for the business, developed appropriate delegated authorities and risk parameters and supported in the promotion of our business with stakeholders.
In the early years, our advisory board was very important in helping to promote and establish what was a world-first tax pooling operation and today plays an important role in exploring wider possibilities.