Corporate Governance is important!

Directors are the key people required by law to administer a company.

An understanding of corporate law and corporate governance issues has to be learnt by the individual director.

It’s a good idea for a Board of Directors to prepare a ‘skills matrix chart’. This chart should identify the skills that the current directors have and also the skills that the Board of Directors believe it would be desirable to have at least one director with a particular skill.

Some directors are totally involved in the company’s operations and perform many of the duties that in a larger company would have been delegated to a leadership team member.

When directors have appointed a CEO who in turn has appointed the leadership team, the Directors are still responsible for the company abiding by the Corporations Act and the other laws that affect the company’s operations.

When managers are appointed, the key requirement is for the Directors to enquire what level of training that the leadership team members have received, to ensure that these managers have a clear understanding of ‘Corporate Governance Issues’.

Whilst many duties and responsibilities have been delegated by Directors to the leadership team, overall the Directors are still responsible for what happens within the company.

The Directors are responsible for ensuring that appropriate systems have been implemented throughout the company, to safeguard the company’s assets and its reputation and to ensure that the company’s systems and records have been established. This will enable appropriate reporting to government agencies and ensuring that the company is abiding by workplace health and safety laws, employment laws, environmental laws, town planning requirements, taxation reporting and payments and many more.

Towers Business Development can assist with implementing a ‘Corporate Governance’ system for your company. To find out more, contact us on 1800 232 088 or email