Bank of England - Chair of Court
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Issued 17 April 2009
Her Majesty The Queen has been pleased to approve, under the
Bank
of England Act 1998, the appointment of Sir David Lees to succeed Sir
John Parker as the new Chair of the Court of the Bank of England. This
appointment is for a period of three years starting in June 2009.
The Chancellor said:
"I am delighted to announce Sir David Lees’ appointment as
Chair of the
Court of the Bank of England to succeed Sir John Parker when he steps
down. Sir David has a wealth of experience that he will bring to this
role, including as a previous member of the Court. His appointment is
an important step in implementing the reforms to the Bank of England
contained within the Banking Act 2009. The new Court, under Sir David’s
chairmanship, will be responsible for ensuring that the Bank of England
as an institution is able to meet the extraordinary challenges it faces
in discharging its monetary stability and financial stability
responsibilities.”
“I am extremely grateful to Sir John Parker
for the significant contribution he has made to the Bank of England
since 2004. During his tenure he has worked closely with his fellow
Court members to conduct its business efficiently, and provided strong
stewardship at a time when the Bank has faced unprecedented challenges
and taken on new responsibilities.”
Notes
1. The Bank of England is the central bank of the
United Kingdom. Its
core purposes are to ensure monetary stability and to contribute to
financial stability. The Bank of England is governed by a Board known
as the Court. The role of the Court is to manage the Bank’s affairs,
other than the formulation of monetary policy, which is the
responsibility of the Monetary Policy Committee. Court’s
responsibilities include determining the Bank of England’s objectives
and strategy, ensuring the effective discharge of the Bank’s functions
and the most efficient use of its resources.
2. Sir David Lees is currently Chairman of
Tate and Lyle (1998-) and Deputy Chairman of Qinetiq (2005-). He has
previously held a variety of roles, including Deputy Chairman of
Brambles Industries (2001-2006), Non Executive Director and then
Chairman of Courtaulds plc (1991-1998), Chief Executive and Chairman of
GKN plc (1988-1996 and 1988-2004 respectively), Non Executive Director
of the Bank of England (1991-1999), Chairman of the CBI Economic
Affairs Committee (1988-1994). He originally qualified as a Chartered
Accountant. He was appointed a Knight Batchelor in The Queen’s Birthday
Honours List in 1991.
3. The Banking Act 2009 seeks to formalise
the current arrangements whereby a non executive director chairs the
Court of the Bank of England. The role of the Chair of Court is of
pivotal importance in the governance of the Bank. As well as chairing
meetings of the Court and agreeing its agenda, the postholder must work
closely with the Governor, fellow non executives and senior Bank
officials, discussing governance and management issues on a regular
basis. Under the Banking Act 2009, it is for the Chair of Court to
appoint non executives to the new Financial Stability Committee within
the Bank. They also take the lead in liaising with the Monetary Policy
Committee in monitoring the latter’s procedures. The Chair is
responsible for ensuring that the performance of fellow non executives
is assessed on a regular basis and in supporting them to fulfil their
role effectively.
4. This appointment is made by Her Majesty
the Queen on the advice of the Prime Minister and the Chancellor of the
Exchequer. This appointment is for three years starting in June 2009.
The Chair of Court receives remuneration of £30,000 a year plus
expenses. The average time commitment is estimated to be five days per
month.
5. Under the Bank of England Act 1998, a
person is disqualified from being a non executive director if he or she
is (a) Minister of the Crown; (b) serving in a Government department in
employment of which remuneration is payable out of money provided by
Parliament; and (c) a servant of the Bank of England.
6. This appointment has been made in
accordance with the OCPA Code of Practice. All appointments are made on
merit and political activity plays no part in the selection
process.
However, in accordance with the original Nolan recommendations, there
is a requirement for appointees’ political activity (if any declared)
to be made public. Sir David Lees has confirmed that he has not engaged
in any political activity in the last five years and holds no other
ministerial public appointments.
About the Author
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from HM-Treasury. Reproduced under the terms and conditions of the
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Article Published/Sorted/Amended on Scopulus 2009-04-20 15:12:02 in Economic Articles
