SO following a company restructure i have been informed that the company would like to promote me to Director (2 directors, 1 MD and 1 CEO) in a small to med Engineering Consultancy.

Its came as quite a surprise and being only 32 im quite happy at the opportunity given to me, however not really having thought about it previously im not really 100% certain on what it will entail and how i will become responsible for things such as H&S, Finances, Staffing etc.

So before my first board meeting next week what questions do i need to be sure to ask, and what do i need to be aware of?

Ask for a full Job description and list of responsibilities?

In my experience, Senior Managament is a place where nethier you or you employer should be in any doubt where your responsibilities start and end.

Just going through those machinations myself.

You want more dough for starters…

Congratulations bland and good luck.

My first tip would be to think strategically. I found that I was being tasked away from day-to-day stuff – as that’s the stuff that you employ others to sort out. Yes, ultimately you’ll be responsble for the people doing the job, but at Director level I’ve always found that the MD/CEO wants to know that the tasks are done, or the company is operating legally H&S wise, and that things are progressing.

The other tip is to think in financial terms; how much can we save by certain tasks, how much is this going to cost? etc etc. If you can think strateguically about how to save money or spend money more efficiently the company accountant and MD will value your contributions even more.

Hope that helps?

In a company this size, a director in title and a shareholder/director will carry different responsibilities.

As a director (in title) a lot of your responsibilities should be listed / shown in your JD – however the key difference between an employee and a director is that you need to (legally) act in the best interests of the “company” at all times. This includes yourself, ie you put the Companies interests ahead of your own..

Congratulations! I run my own engineering (electronic) consultancy as a ltd company.
Yes, corporate governance legislation & expectations have become more demanding for both executive & non-exec directors, especially for board members. CBI or IOD should be able to help, or specialist solicitors (should be FOC).

I agree with the above; not being 100% clear on responsibilities & expectations is asking for trouble.

will you be registered as a director with companies house?

They have a number of leaflets online explainign your responsibilities.

you put the Companies interests ahead of your own

*sniggers*

I think you have to be seen to be doing this. No one expects Directors to do anything bar look after their pensions and bonuses 😉

That’s a good point from wwaswas.

If you are listed as a company Director you’ll also have to do a tax return.

My first tip would be to think strategically. I found that I was being tasked away from day-to-day stuff – as that’s the stuff that you employ others to sort out. Yes, ultimately you’ll be responsble for the people doing the job, but at Director level I’ve always found that the MD/CEO wants to know that the tasks are done, or the company is operating legally H&S wise, and that things are progressing.

The other tip is to think in financial terms; how much can we save by certain tasks, how much is this going to cost? etc etc. If you can think strateguically about how to save money or spend money more efficiently the company accountant and MD will value your contributions even more.

I expect this to happen as this is the main reason behind being promoted i believe following previous conversations.

you put the Companies interests ahead of your own

So i have to do work as oppose to wasting time here, god dammit!

Many years ago I was asked to become a director – I asked 7 times for the terms, they were never forth coming so I declined

Congratulations mate i hope it all works out for the best

Ed

Congratulations.

You need to check whether you’ll be a director in title or a statutory one too – I’ve been a director (sitting on the board that run the company) without being a statutory one. TBH if you can manage that, all the better IMO.

Being ask to be a director was a good thing for me, it was a huge vote of confidence in me from my colleagues, and it changed how I thought about work, it went from ‘a job’ to being ‘in business’.

On the flipside (and verify these yourself, I may be out of date), as a director you can be held to account if the company is negligent or fraudulent. Also if you behave/are treated as if you are a director then in the eyes of the law you are, regardless of filings at Companies House.

Hope it goes well for you.

Director in title or statutory. Duties as per CDDA 1986.

Is the company stable financially ?

Don’t sign any personal guarantees is a good start.

Cheers guys, some good pointers there

Director of what?

As already expressed, list of duties and responsibilities. Be aware that resigning from the company may have more restrictions placed on you on what you can or can’t do for a 12 month period.

Good call on the pg’s!

Congratulations and cheers.

Read the Companies House information for directors
Directors duties are now codified in the Companies Act 2006 rather than the vaguer mish mash of what existed before
Read all of everything you sign (personal guarantees and performance warranties pop up all over the place these days)
Make sure you understand the consequences of taking your remuneration through dividends (if you have a shareholding) rather than salary and if you take the dividends do it properly and legally
Is there directors and officers liability insurance cover in place
Be aware of health & safety legislation and consequences of not complying

Is there directors and officers liability insurance cover in place

This is useful for any company of any size, and I’d ensure it has it or get it in place asap once you’re a director.

Statutory responsibilities are reasonably clearly nowadays – see tips above – but it’s a good step up and takes you to another level when looking to move to talking to other firms, if that happens in the future. Essentially, you have to be brave to be honest in the boardroom about what’s going well and badly in your areas, and to question openly the reports and strategies of others – all whilst getting on well with people. As was said, makes a job a vocation.

There’s a chance to put your values and principles into the business, too – so work out what they are, what you’d like to see changed, how you can make the place better for the employees, customers, etc – and you’ll then do fine.