Media centre

Tuesday 25 Apr 2006

SELECTION OF NEW PUBLIC MEMBERS BEGINS

Region & Route:

National

Network Rail today begins the search for up to 25 new Public Members who will help keep the company accountable for its actions and ensure the Board of Directors conducts affairs to the highest standards. Chairman, Ian McAllister, said: “A Network Rail Public Member has the opportunity to have a real influence on our private sector company, which is delivering an important public service.  We need people with a strong belief in accountability and a thorough understanding of, and commitment to, good corporate governance.” The successful applicants, who will be selected by an independent panel, will begin their term of office in November 2006.  They will join Network Rail’s existing Industry and Public Members.  The total number of Members will be around 104.  Together, each year, they must consider whether the Network Rail Board is doing what is required of it by the Office of Rail Regulation. 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 share capital, 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 make strategic decisions or 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 of re-appointment of Network Rail Directors; and receiving Network Rail’s annual report and accounts. Why Network Rail is seeking 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 eligible franchise operators.  When the original three-year term for Public Membership expired last year not all Public Members sought or qualified for renewal.  Those who did were appointed to terms of one, two or three years.  This allowed for a staggered process of future Member appointment, ensuring continuity and stability by avoiding a situation where all Membership terms expired at the same time.  The Memberships of those who were appointed for one additional year expire in November 2006.  And Network Rail today begins the selection process to ensure the new Public Members are in place by this time.  Existing Public Members are eligible to re-apply. The selection process An independent Membership Selection Panel will select from applications and recommend to the Network Rail Board those organisations and individuals whom it considers have the appropriate skills and experience to be appointed as Public Members.  Those who are interested in applying can find the application form and other information about Membership at www.networkrail.co.uk.  The closing date for applications is Wednesday 31 May 2006. The selection panel  The independent panel comprises:                                            

• Alastair MacDonald, the Panel Chairman, is a former Director General for Industry at the Department for Trade and Industry 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 was previously Permanent Secretary at the Department for Trade and Industry.  Prior to that, Catherine held various positions at the DTI including Director General of Competition and Markets Group, and Director General Services Group.  She has been a Non-Executive Director of Swiss Reinsurance GB since 1999

 

• 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 

  More information on the role of Members can be found on Network Rail’s website.