Focus on the future

When we released the Top Five Issues for Directors in 2024, we encouraged you to raise your game to lead your organisations in a new, volatile world that appeared to be in continual crisis. None of the risks and challenges that had emerged in previous years were going away, and new issues continued to emerge. In the face of this ‘permacrisis’, as directors, you should ensure you set the right tone for the organisations you lead, ensuring they have the adaptability to navigate whatever new crisis, uncertainty or challenges may be encountered. As always, in the face of challenges, opportunities await. 

Directors’ duties under section 131 of the Companies Act 1993 (to act in good faith and in the best interests of their companies) were amended in 2023 to “clarify” that directors may consider a wide range of factors (other than “profit maximisation”) in making decisions. While the Institute of Directors (IoD) supported the objectives of the Bill, we proposed a range of options that we considered better addressed those objectives, rather than the marginal impact of the small, ad-hoc, piecemeal amendment.

We continue to advocate for better guidance, training and materials to help directors determine what “acting in the best interest of the company” really means. We also proposed that company boards make a best interest’s statement to shareholders, to enable directors to outline the ways in which they are pursuing their company’s best interests, and a thorough review of the Companies Act 1993. But directors can, and should, demonstrate their leadership capabilities, using innovative and future thinking to not only address obstacles, but seize opportunities to act in the best interests of their organisations. 

Our Top Five Issues for 2024 reflected the major risks that New Zealand boards face this year and beyond:

• Climate leadership
• Future-ready succession
• Harnessing AI
• Enabling productivity
• The value-adding board

The IoD May 2024 Leadership Conference featured a range of outstanding international and national speakers who addressed some of the most relevant and topical issues in governance and leadership today. 

This update contains a collation of materials to inspire conference attendees, and those who were unable to attend, to continue to pursue ongoing improvements to their governance practice and that of their boards.  

In doing so, this governance update has an emphasis on thinking about the future. This update contains a collation of materials to inspire our members to think deeply about the challenges and opportunities ahead and reflect on the insights from these articles. 

The Governance Leadership Centre will also be publishing “Outtakes” to draw out the key insights from speakers at the 2024 Leadership Conference. 

Registrations are now open for the 2025 Leadership Conference 

Download Focus on the future