People must consider the personal risks and numerous obligations before seeking to become a club director, stresses industry consultant Warren Tapp.
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Are you ready to be a director?
A lot of people want to become a company director, whether paid or as a volunteer, but have not considered the personal risks and obligations involved.
In today’s world directors face increasing scrutiny, more regulatory expectations and growing stakeholder accountability.
In law, ignorance of the law is no defence. Non-executive directors now have to be active overseers, not passive observers.
Here are 3 tips:
- Don’t just show up, be prepared
- Engage deeply with Board reports and risks
- Challenge assumptions and seek clarity
If you are appointed as the Chair, consider your role as the anchor of the Board, to be highly effective.
Consider the workload, with regular Board meetings you must attend, Board papers to read prior to meetings, travel to the company sites and events, regular emails and phone calls to deal with, and the AGM.
Ask yourself:
Am I prepared to be personally accountable?’
Do I have the time to do this properly?
Will I challenge the Board and management when needed?
Are the company’s governance and compliance structures sound?
Are you ready to be a director?
Warren Tapp
