Corporate governance

The board

The board of Highlands and Islands Enterprise comprises 11 non-executive members, including the chairman, and one executive member who is the chief executive. Board members are appointed by the First Minister to the Scottish Parliament and their remuneration is determined by the Scottish Executive (now Scottish Government) Enterprise and Lifelong Learning Department (SEELLD).

Public appointments web pages

Most appointments to public bodies, such as HIE, operating in Scotland are now the responsibility of Scottish Ministers.

Non-Departmental Public Bodies (NDPBs), often called 'quangos', are national or regional public bodies, operating independently of Ministers, but for which Ministers are ultimately responsible.

NDPBs of various types play an important part in the governance of Scotland.

The Scottish Government's Public Appointments Unit (PAU) maintains a register of people who are interested in undertaking work on a public body to which the Scottish Ministers make appointments. The unit, which does not make appointments itself, is always ready to consider names for addition to the register. The list is used as a resource on which Scottish Ministers may draw when considering candidates for appointments for which they are responsible.

The link below will lead you to a list of all the public bodies sponsored by the Scottish Government to which Scottish Ministers make appointments and from there to details about each body and individual NDPB web sites (if they have one). Details of all appointments made by the Scottish Ministers to each of these NDPBs, the terms of appointment, the occupation of appointees, their place of residence and remuneration where appropriate are also provided. People wishing to register as candidates can also do so at this site.

The HIE board

The board, which meets at least eight times a year, provides the strategic oversight of HIE, ensuring that it is carrying through its statutory remit. It has specific responsibility for approving overall strategy and operating plans, ensuring that the executive has thorough arrangements for appraisal, monitoring and evaluation of programmes and seeing that targets are set and met.

The chief executive and management group

The chief executive is the senior full-time manager and has overall responsibility for the efficient management of Highlands and Islands Enterprise. This responsibility is undertaken in conjunction with a management group formed by senior executives. As a board member, the chief executive also has a pivotal role in assisting the board to develop policies and priorities and ensuring their efficient implementation.

The audit committee

The HIE board has established an audit committee comprising four non-executive board members, one of whom acts as chairman. A representative of the Scottish Government's SEELLD, and head of internal audit and compliance, the chief executive and the director of finance attend meetings of this body. Meetings are held quarterly. The head of internal audit and compliance presents a formal annual report to the chief executive and this forms the basis of an annual report to the board by the chairman of the audit committee.

Combined Code

While the remuneration and service contracts of board members are set by SEELLD, the recommendations of the Combined Code have been applied in so far as they are appropriate to Highlands and Islands Enterprise.

Conflicts of interest procedures

HIE operates strict and comprehensive procedures to deal with potential conflicts of interest. These include HIE  holding, and updating annually, registers of interests covering not only board members and directors, but senior members of staff. These registers are available to any member of the public who wishes to examine them. Interests which must be registered are rigorously defined: as any contractual or financial relationship, or simply position of authority, with outside companies or organisations.

Whenever a board member, director or member of staff has an interest in an application for assistance, he or she is required to declare the interest and thereafter take no part in the investigation, processing or approval of the case. Such declarations by board members and directors are recorded in the minutes of the appropriate board meetings.

Additional procedures are invoked when a LEC chairman declares an interest. Such cases are referred to HIE for processing and decision.

Open to account

HIE's commitment to the effective handling of conflicts of interest, and public accountability in its operations, led to the introduction of the 'Accountability Through Openness' policy, followed by 'Appointability Through Openness.'

Citizen's Charter

HIE is committed to the principles of the Citizen's Charter and gained the Charter Mark award for each of the three year periods from 1994 and 1997. In 2000, HIE became the first organisation in the Highlands and Islands to gain this distinction for the third time.