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Friday 8 May 2009

SELECTION OF NEW PUBLIC MEMBERS BEGINS

Region & Route:

National

Network Rail today begins the search for up to 25 new public members who will hold its board to account for its actions.

Chairman of the membership selection panel, Alastair Macdonald said: “Network Rail is poised at a decisive moment. It has begun a £35bn investment programme to build a bigger and better railway. What better time to become involved as a Network Rail public member?

“These members have the opportunity to have a real influence on a private sector company, delivering a vital 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 2009. They will join Network Rail’s existing industry and public members. The total number of members will be around 105. 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; receiving Network Rail’s annual report and accounts; and approving long-term incentive schemes.

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 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.

Network Rail today begins the selection process for new public members. 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 Friday 12 June 2009.

The selection panel

The panel comprises:

Alastair Macdonald as chairman, formerly director general for Industry at the Department for Trade and Industry and previously a journalist for several years on The Spectator and Financial Times. He was until recently a civil service commissioner chairing selection panels for senior civil service appointments.

Jim Cornell a non-executive director of Network Rail joined British Rail in 1959 and held various senior positions including latterly group managing director of British Rail infrastructure services; he is currently an executive director of the Railway Heritage Trust.

Catherine Bell a non-executive director of the Civil Aviation Authority, Ensus Ltd and United Utilities plc. Formerly acting permanent secretary at the Department of Trade and Industry 2005; she is currently chair of the property trustees of the Civil Service Benevolent Fund and a governor of the London School of Economics.

Elizabeth McMeikan since 2005 has been a civil service commissioner and a non-executive director of J D Wetherspoon Plc acting on a number of its board committees - remuneration, nominations and audit. She is also a non-executive director of Direct Wines Ltd chairing its remuneration committee. Between 2004 and 2006 she was a member of the Insolvency Service steering board. Formerly she spent 12 years in a wide variety of commercial roles with Tesco plc ranging from marketing, business development through to human resources responsibilities.

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