As 2011 begins and the spotlight remains firmly on company directors, it is essential that those leading business in Ireland fully understand the responsibilities of their role. Now more than ever, company directors must act with integrity and adhere to the highest professional standards.
The Institute of Directors in Ireland (IoD ) has prepared a useful dos and don’ts checklist for directors:
Key things that a director must do:
— Act in the best interest of the success of the company.
— Act honestly, act diligently, keep good records of how the company is directed and controlled.
— Take good advice.
— Keep knowledge up-to-date.
— Show leadership and discharge directors’ duties.
— Disclose conflicts of interest.
— Ensure a culture of good communications.
— Make sound judgements.
— Attend board meetings.
Key things that a director must not do:
— Never act in anyone’s interests other than the company’s interest.
— Never act dishonestly or recklessly.
— Never be involved in wrongful or fraudulent trading.
— Never take bribes/personal gain.
— Never withhold information that is relevant to the board’s decisions.
— Never break the law.
— Never make assumptions/fail to challenge.
— Never allow the company to trade whilst insolvent.
— Never act for competitors.
There is a wide range of duties and responsibilities attached to the role of the director and it is therefore crucial that those who enter into a career as a director do so with their eyes wide open. Whether you are a newly appointed director or simply wish to refresh your knowledge and expertise, the Institute of Directors in Ireland offers an extensive training programme designed to support the development of directors in Ireland. For further information visit www.iodireland.ie