Duties of an Independent Director
- Exercise reasonable care, diligence, and skill in carrying out duties
- To act as honestly, in good faith, in the interests of the company, and to avoid conflicts of interests
- Primary role is advisory and supportive – help Board towards balanced decisions, objectively
- Examine information
- Are you in sympathy with the business, aims and style?
- Would you be prepared to invest in it long term
- Penalties for knowingly part to fraudulent or wrongful trading
- Be sure you have identified any shortcomings and are sure the team can deal with them
- Make sure everyone knows what you are doing – avoidance of conflict of interest
- Background reading – keeping informed about the industry
- May have to surrender fees to existing main employer
- Make own pension arrangements
- Read and study Board papers before the meeting
- Shareholders interests come before directors’.
^ page top