7.3.3.4 Evaluation

Evaluation focuses on the performance of the board, its committees and the individual members. It should be carried out annually and an external evaluator should conduct the evaluation every three years. Independence of directors and their diversity are – among other things – part of the evaluation procedure. The annual report should state how the performance has been evaluated. By specifying that, besides the board, the board committees and the individual members must also be evaluated, this best practice provision covers the whole board. The evaluation is described well in the UKCGC and is a strong part of this building block of independence.