Media centre

Tuesday 7 Oct 2008

NETWORK RAIL APPOINTS NEW MEMBERS

Region & Route:

National

Network Rail today announced the names of its 26 new Public Members who will help keep the company accountable for its actions.

Chairman, Ian McAllister, said "Public Members have strong powers and play a vital role in holding the company to account. We welcome our new members who have demonstrated a firm belief in accountability and a thorough understanding of, and commitment to, good corporate governance."

The new members, who were recommended by an independent panel, will begin their term of appointment in November 2008. They will join Network Rail’s existing Industry and Public Members and will replace the public members whose membership expires this year. The total number of members will be 106.

What members do

Network Rail is a company limited by guarantee; it is a private sector organisation operating as a commercial business and with a Plc-style Board of Directors – but it is without shareholders. The Network Rail members fulfil the role of shareholders, but do not receive dividends or have equity interest, as Network Rail is a not-for-dividend company, and any profit is re-invested in improving Britain’s rail infrastructure. Members do not receive payment for their services, but are afforded reasonable expenses for the execution of their duties.

Members do not get involved in operational or management decisions, but they play a crucial role in the company’s corporate governance and have statutory rights and duties. These include: attending the company’s annual general meeting; voting on the appointment and re-appointment of Network Rail Directors; and receiving Network Rail’s annual report and accounts.

Why Network Rail has appointed new Public Members

The original 113 Members were appointed in 2002, soon after Network Rail became the rail infrastructure operator. The total number fluctuates depending on the number of rail companies eligible as Industry Members. Each year about one third of the Public Members term of appointment expires. This allowed for a staggered process of future Member appointment, providing continuity and stability by avoiding a situation where all membership terms expired at the same time. Existing Public Members were eligible to re-apply.

The selection process

Following an open and widely advertised campaign for applicants, Network Rail has today announced its completion of the selection process for appointment of the new Public Members who commence their term of membership on 26 November 2008.

An independent membership selection panel selected from applications and recommended to the Network Rail Board individuals whom it considered had the appropriate abilities and experience to be appointed as Public Members. In line with its stated policy, the Board accepted the panel's recommendations unanimously.

The independent panel

· Alastair Macdonald, the panel Chairman, is a former Director General for Industry at the Department for Trade and Industry (DTI) and was a journalist for several years on The Spectator and Financial Times. He is currently a Civil Service Commissioner chairing Selection Panels for senior civil service appointments

· Catherine Bell is a non-executive Director of the Civil Aviation Authority, Swiss Re GB plc, Ensus Ltd and United Utilities plc. Formerly Acting Permanent Secretary at the Department of Trade and Industry 2005.

· Jim Cornell is a Non-Executive Director of Network Rail. He joined British Rail in 1959 and held various senior positions including latterly Group Managing Director of British Rail Infrastructure Services. Jim is currently Executive Director of the Railway Heritage Trust

The new Public Members

Tim Anderson, Tony Berkeley**, Tracey Bleakley, Geof Butterwick*, Jeremy Candfield**, Dominic Carter, Peter Corbett, Katherine Deas, Carolyn Dwyer, Stephen Grant, Rhys Jarvis, Ian Johnson, Samson Kambarami, Joan Langley, Alan Lodge, Andrew Lowery*, Subash Ludhra, John Martin, David Moore, David Pett*, Jean-Pierre Ramirez**, John Richardson, Geoffrey Sallis, Ramnik Saund, Ralph Tiffin*, Nina Wrightson

*Existing individual Public Members who have been reappointed

**Formerly the representative for an organisation Public Member