Corporate Governance

Meeting: 
Plenary on 2006-12-06
Session date: 
December 6, 2006
Reference: 
2006/0438
Question By: 
Roger Evans
Organisation: 
GLA Conservatives
Asked Of: 
Peter Hendy (Commissioner, Transport for London)

Question

The current benchmark for good corporate governance is the Combined Code, which states that no one individual should have unfettered powers of decision making. Are you comfortable that the Mayor has such wide-ranging powers over appointments to the TfL Board?

Answer

Answer for Corporate Governance

Answer for Corporate Governance

Answered By: 
Peter Hendy (Commissioner, Transport for London)

Government granted the Mayor the power to appoint the TfL Board when it enacted the Greater London Authority Act 1999. That Act provides that the Mayor should appoint the Board subject to a requirement for him or her to consider the desirability of ensuring that the members between them have experience in key issues such as transport, finance and commerce and trade unions. The membership also has to represent the interests of women and those with mobility problems. There are also a number of other checks and balances both in the GLA Act and at general law. I understand that the GLA Bill which has recently been published proposes some changes to the current arrangements.

In addition, as a matter of good practice, Board appointments follow an appropriate process outlined in the GLA's Code of Conduct.

The Combined Code is a narrowly focused document that is private sector based and is therefore not relevant to TfL on this issue.

I have no problem at all with these arrangements.