Governance news bites

Governance is often in the headlines, and the last few weeks have been no exception. Recent news related to governance includes: 

US developments: whipsaw, hacksaw or chainsaw?

Charles Finny highlighted a catalogue of fast-moving developments in the United States in a webinar with IoD Chief Executive, Kirsten (KP) Patterson on 18 February 2025. That seems like a lifetime ago, given the range of daily, and sometimes twice, press coverage of events driven by the new US administration. Directors and boards keeping track of this, and understanding the implications of it for supporting management, is important but difficult.

Among these is an announcement on 1 February 2025 of tariffs on Canada, Mexico, and China and these took effect on Wednesday 4 March 2025 (NZT). Many commentators have noted the US share market drops almost in real time with these announcements. Since then there have been representations from car makers and (also) on Wednesday the administration announced a one month exemption from the tariff for car and car part imports. On Friday 7 March (NZT) a one-month pause on tariffs for goods coming from Mexico and Canada was announced. More developments on this front seem likely.

In a further development, chainsaws have literally made it into the picture in relation of reform of the executive by the administration, specifically in terms of making efficiencies in the US Federal Government.

And there is yet more action with a flurry of Presidential Executive orders and other actions within the executive. There is, however, an equal snow storm of litigation with more than 100 court proceedings many of which are stopping action on the Executive Orders in their tracks.

This ever-changing landscape is difficult for New Zealand directors to navigate from a long distance away. It is more challenging for our US counterparts. Our sister IoD, the National Association of Corporate Directors (NACD) in the US continues to publish information about the implications for governance of these developments, which is helpful for New Zealand directors and their boards.

A dog eat dog world in governance?

Boardroom politics can be ruthless, but few would expect a full-scale corporate-style coup in the world of pedigree show dogs. Yet, at an Auckland dog club egos have clashed in a dramatic power struggle, culminating in a hostile takeover attempt that would not be out of place in a high-stakes business deal. Allegations of rule-bending, strategic alliances and a fight for control have turned what should be a genteel organisation based canine passion into a battleground, exposing deep rifts over leadership and direction. This isn’t confined to dog clubs of course: chicken fanciers have similar tensions.

For all those involved with governance, this saga is a reminder that governance challenges can emerge in any organisation, no matter how niche or seemingly benign, with paid professional director or volunteer governors. It underscores the importance of robust governance structures, clear rules of engagement and well-managed succession planning – principles that apply equally to corporate boardrooms and community clubs. Without strong leadership, transparency, and effective dispute resolution mechanisms, even the most respected institutions can become paralysed by infighting. For directors, the lesson is clear: effective governance isn’t just about managing risk – It’s about ensuring stability, credibility and trust, no matter the sector.

Governance a hot topic in New Zealand: Comings and goings

What was in the ‘governance water’ this week? There seemed to be a flood of stories about governance with director and chief executive exits and board appointments being prominent in the news. As a few examples, several board chairs have had to front on resignations this week, including the Reserve Bank of New Zealand chair, Air Zealand chair and dairy company Miraka's chair. This was preceded by new insights into public sector board appointment process related to the Energy Efficiency and Conservation Authority (EECA). Then a succession of stories about board composition has been front and centre with publicity about the Wellington Water, Ngai Tahu Holdings Corporation, Bremworth and NZME boards. And finally, for a bit of offshore flavour, the perils of succession in family businesses and their boards was laid bare in Singapore this week with City Developments Limited (CDL).

For directors and boards faced with governance events like these, it can be a bit daunting. Fortunately, the IoD’s Four Pillars of Governance Best Practice can help and there is also the ability to ask question of the IoD’s Governance Leadership Centre.

Brain cell computer: the next step in AI

In a Melbourne laboratory, scientists have successfully merged biological neurons with silicon chips, creating what some are calling the first "thinking" brain-chip hybrid. This fusion of human brain cells and technology marks a dramatic leap forward in computing power, challenging traditional notions of machine intelligence. By harnessing the adaptability of organic neurons, these biohybrid chips could soon outperform conventional AI, particularly in problem-solving and energy efficiency.

For New Zealand directors, this development underscores the accelerating convergence of biology and technology – a trend that presents strategic opportunities and raises profound ethical considerations. The potential applications are vast, from next-generation AI-driven decision-making in corporate governance to breakthroughs in biotechnology and healthcare. However, with such innovation comes responsibility: boards must grapple with regulatory, privacy and workforce implications as these technologies evolve. The Institute of Directors’ Quantum Leaps Ahead: Top 5 Issues for Directors in 2025 highlights AI governance as a critical focus, urging boards to develop the oversight necessary to navigate this rapidly changing landscape. The emergence of biohybrid computing is a prime example of why directors must stay ahead of the curve, ensuring their organisations are not just aware of such advancements but actively preparing for their impact.