Actuaries contribute enthusiastically to their profession through a range of activities. One very important role is that of Council member of the Institute of Actuaries of Australia. Council is responsible for the leadership, governance and stewardship of the Institute and the profession.

Becoming a member of Council provides numerous opportunities to make a significant contribution to the actuarial profession whilst broadening your skill set and experience.

Joining the Institute’s Council can be a challenging and rewarding experience. It can also provide:

• numerous opportunities to make a significant contribution to the actuarial profession, both in Australia and internationally;
• an opportunity to maximise personal development opportunities;
• become equipped to serve on other boards through your experience on Council; and
• lay the groundwork for Presidential ambitions

A Council election is held each year. To help Members who are interested in being elected to Council, the Institute has developed a brochure answering many of the frequently asked questions and outlining the process for becoming a Council member. To download the brochure “Leading your profession” click here.

Current Council members can be viewed here.

The Institute is a public company limited by guarantee and governed by the provisions of the Corporations Act 2001 (Cth). Council is a Board of Directors and members of Council are directors of the company. The Institute’s Constitution sets out the powers and responsibilities of Council.

Council has a high level of responsibility and accountability in the following areas:

• governance of the Institute – ensuring compliance with legislation and regulations; ensuring adherence to stated policies; maintaining standards of probity and transparency; and providing comfort to members that the Institute is well run and that risk is being well managed;
• leadership of the Institute – Council has primary responsibility for the formation and implementation of the Institute’s strategy; and
• stewardship of the profession - in this role, Council is the primary custodian of the Institute’s standards and reputation. It takes a proactive risk management role and actively maintains and enforces ethical standards.

The President, Senior Vice President and Vice President make up the Presidential Committee. Each position is held for one year on a rotational basis. At the last Council meeting each year, Council elects a new Vice President. The new Vice President will hold the position of Vice President from the 1 January the following year, the position of Senior Vice President the year after and then the position of President in the third year.

The President is the leader of the Institute of Actuaries in Australia during his or her year of office. The role of President has a number of similarities to the position of Chairman of the Board of a company. However, because the objectives of the Institute include representation of actuaries in Australian society, the President also assumes responsibilities as leader and spokesperson for the profession in Australia. The role of President is expected to occupy 30% of a full time role (including the time commitment associated with Council meetings). The President receives administrative support from Institute staff.

The roles of Senior Vice President and Vice President are to share the workload of the President, including substituting for the President at events where required. The Senior Vice President and Vice President are expected to be more active on Council Committees and sub committees/taskforces. They are also expected to utilise their succession period to develop their understanding of the Institute’s business so that they are fully prepared for their Presidential year.

The Presidential Committee exercises delegated powers of the Council between Council meetings, in a manner consistent with Institute policy. The Presidential Committee is accountable directly to Council for the exercise of its duties.

The members of the Presidential Committee are expected to attend and pass the Company Directors Course conducted by the Australian Institute of Company Directors.

Being a truly effective Council member, similar to being an astute actuary, is something that is achieved with time, experience and a willingness to listen to, and learn from, the guidance and advice of others. In addition, Councillors are subject to a number of directors’ duties which are explained further in the brochure “Leading Your Profession”.

Qualities and attributes

The Institute’s Council is a group of individuals. Each member has their own personality; they are not expected to be clones. A Council member (director) should be happy to work in this interactive environment.

In summary, the key qualities and attributes of an effective director usually include the following:

• sound business judgment
• ability to work well in a team
• wide general knowledge
• an enquiring mind
• independence of thought
• integrity
• breadth of vision

The keys to achieving good performance whilst being a director include:

• maintaining the highest standards of ethical behaviour
• taking an active part in Council meetings
• understanding your duties as a director
• remaining briefed on internal and external risk environments and take action where necessary
• identifying ‘trouble spots’ in the annual audit statement and take action if necessary
• avoiding conflicts of interest
• attending all Council meetings
• reading all agenda papers prior to attending Council meetings

Key expectations

Council members are expected to:

• attend a minimum of 80% of Board meetings;
• read all Board papers prior to attending Board meetings and take an active part in Board meetings;
• read and understand the contents of the Director’s Compendium (provided during the induction of new Council members);
• remain briefed on internal and external risk environments and take action if necessary;
• identify ‘trouble spots’ in the annual statement of audit and take action if necessary;
• comply with the various duties of directors;
• observe the highest standards of ethical behaviour – for example, maintain confidentiality, act honestly, behave reasonably and with due diligence and treat colleagues with respect;
• be independent in their judgments and actions; and
• avoid conflicts of interest.

Some of the above expectations are legal duties and obligations; others are consistent with good corporate governance practice.

Appointment to Council is for a period of four years, except for casual vacancy appointments which expire at the same time as the term of the Councilor being replaced.

As a guide, the time commitment for serving on Council is:

• attendance at 4 - 6 Council meetings per year – these are usually up to 6 hours duration and generally held in Sydney. The number and length of meetings varies from year to year;
• attendance at an all-day planning/strategy session, usually held in late January or early February;
• be available for between-meeting teleconferences – these teleconferences will only occur if needed between Council meetings; and
• an equivalent amount of time prior to a Council meeting in reading and preparing for the meeting.

Generally, it is expected that a Council member will spend about 8 hours per month on Council business. From time to time, there may be an additional meeting called for a special purpose.

Council members are also encouraged to attend the Institute’s many events, including graduation dinners, major events and the Annual General Meeting. Councillors may also be asked to volunteer to serve on a Council Committee, such as the Audit and Risk Council Committee, the International Council Committee or the Education Council Committee or act as the Council liaison on a Practice Committee or other committees as needed. The time commitment for these roles varies.

Whilst the Institute’s induction program assists Council members in understanding the key aspects of the role, ultimately the responsibility lies with each Council member to ensure that:

• the information needed to make informed and proper decisions is available;
• they ask questions about unfamiliar issues, policies, practice and procedure to ensure a better understanding of such; and
• just as with actuarial practice, they seek out opportunities to develop their skills as a Council member.

The Company Secretary has some very useful general guides on how to be an effective director, how to assess performance and where to find professional development opportunities. This library is available to all new and existing Council members.

Generally, a Council member must retire from office at the conclusion of the fourth Annual General Meeting after he or she was elected or deemed to have been elected as a member of Council. As such, a call for nominations for Council is advised annually around early August.

Only Voting Members are eligible to be members of the Council and to vote on the election of members of the Council.

The Council has a target number of 12 members and elections are held in accordance with the Constitution as required. If a ballot is required the election of members of Council is conducted by secret ballot using proportional representation.

Diversity

The role of a Council member is not to represent any subset or constituency of the membership, but to act in the interests of the membership as a whole, comprehending the interests of as great a part of that group as he or she can.

As such, diversity in Council membership is strongly and actively encouraged, in order to bring new and challenging perspectives to issues.

Diversity is reflected and sought in many ways, including through:

• practice area;
• professional and other experience;
• gender;
• cultural background; and
• residence.

For more information about the Council elections click here.

From time to time, the Nominations Council Committee may approach Members about joining Council. The role of the Committee is to encourage interest within the membership in being a Councillor and to ensure a sufficient number and variety of candidates stand for the annual election.

For further detail please contact the Company Secretary and Returning Officer, Anne Peters.