A director is responsible for leading and overseeing a company. A director has a set of legal and ethical duties. In this short blog, we will look at four key points that make a good director.
Act in good faith
Acting in good faith means always doing what you think is best for the company. This is an important guiding principle to keep in mind whenever you are making decisions.
Have a duty of care
Being a director is a weighty responsibility. Decisions should be made with care and skill. Often it is useful to seek expert advice on complex topics such as legal or employment questions. Be resourceful and build a good network of advisors. Many places have local business networking groups that can provide much support and across industry insights.
Make sound financial decisions for your company to protect yourself and your creditors. Keep the company’s financial records up to date and ensure you understand them. If you don’t understand financial statements and have limited financial literacy, it is advisable to get an accountant on board. Ean Brown Partners provide a range of financial and advisory services.
Know your responsibilities
You need to know and follow laws relevant to your company. For example, you need to know about employment, health and safety and other industry related legislation. There are many resources available online to learn about basics and you can also upskill through the Institute of Directors.