Any Other Business: Jeremy Corbyn romped to victory in the Labour leadership campaign over the weekend, prompting widespread resignations from senior party members unwilling to work under the left-wing veteran backbencher.
The rank outsider received 60 per cent of more than 400,000 votes after a whirlwind surge in enthusiasm for his anti-austerity message, but seeds of discontent and a lack of unity within the party could make the next few months particularly challenging for Labour’s new leader and the party at large.
Engrained divisions have the potential to topple any organisation or group. How can scheme boards respond to an incoming chair or trustee ready to challenge the status quo?
Chris Roberts, trustee representative at professional trustee company Dalriada, said a common aim had the potential to overcome inherent differences of opinion.
Trustees in general shouldn’t be as difficult to manage as politicians. [They] all have the same ultimate aims – to adhere to the trustee rules and get the best outcome for members
Chris Roberts, Dalriada
“Trustees in general shouldn’t be as difficult to manage as politicians. [They] all have the same ultimate aims – to adhere to the trustee rules and get the best outcome for members,” he said.
Roberts said well-structured boards should have the mechanics in place to work through decision-making processes in a sensible and considered manner.
“Any differences of opinion would be met with a vote and the chair should have the casting vote,” said Roberts.
“If trustees find themselves with a set of rules that don’t allow them to make decisions where differences of opinion occur then that is something they need to look at as a matter of urgency."
Blowing away the cobwebs
Richard Butcher, managing director at independent trustee company PTL, said it was positive for entrenched views on scheme boards to be met by robust challenges.
He said: “You might end up with exactly the same views at the end but they will be robustly held. On the other hand they might overturn some established and unnecessary orthodoxy.
“It’s good to have someone who comes in and blows the cobwebs away.”
However, Butcher said all trustees have the same legal obligation to make sure the “right things are done in the right way” and to speak up if a new chair is taking things off course.
“If you think that fundamentally the chair is taking it in the wrong direction you have an obligation to make your views known even as an ordinary member, whether someone is the chairman or not,” said Butcher.
Stay open-minded
Mark Ashworth, chair of pension trusteeship at investment advisory Law Debenture, said trustee boards should be a forum for open-minded and democratic discussions.
“Trustees should have an open mind, be open to suggestions and challenges… [and be] keen to think about whether they’re doing things in the best and the right way,” he said.
Ashworth said new ideas and challenges to the board status quo should be carefully presented with proper planning and sufficient thought given to educating trustees on unfamiliar topics.
“The challenge is to make sure there is the right channel for that sort of energy and challenge so that it can be properly considered,” said Ashworth.
“The chair would need to introduce [ideas] in a careful way – not just land the discussion without appropriate background."
