Industry superannuation funds should be able to replace employer or union board members with independents that have the skills and experience to perform as a trustee, says the Australian Institute of Company Directors.
“Good governance underpins the confidence we all need to have in the operation of superannuation funds,” says the institute in an email to I&T News.
“Industry superannuation funds should have the ability to boost members’ confidence by replacing employer and union representatives on their boards,” it says.
The Cooper review of superannuation funds recommends that one-third of board seats be taken by independents. But that “does not go far enough”, the institute says.
“The best result is one where the board is selected for its skills base,” it says. The institute recommends adopting the ASX Corporate Governance Principals.
The Australian Institute of Company Directors has 27,000 members. It describes itself as a not-for-profit corporate governance organisation.