Appointed to a Board: Are you up for it?

Congratulations with your appointment as a Non-Executive Director to the Board!

After it has sunk in – take 15 minutes and reflect: Am I up to it to meaningfully contribute to the Board and the business? And what are the personal risks as Board member?   

A Non-Executive Director’s role comes with major responsibilities – with direct accountability and personal liability. This is a serious undertaking – and the acceptance of this role requires careful consideration.

Start by fully understanding the Companies Act (no 71 of 2008) – and read Subsection 77 twice and carefully. Still ready to accept the challenge? The fiduciary responsibilities as a director of a company are onerous and should be carefully considered before stepping into this role.

Then ask three more questions:

• Firstly, consider if you really have a strong understanding of the industry and market dynamics to make informed strategic decisions?
• Secondly, consider whether you have adequate financial acumen and a proficiency in financial statements and corporate finance to oversee financial health and performance?
• Lastly, do you fully understand the risks that impact the company’s future?

These capabilities are prerequisites for the strategic oversight and governance responsibilities inherent in board membership.

By now, you would have concluded that a company board directorship is not about job security and prestige – it’s about dynamic contribution and accountability. It is also not permanent.

Are you up to the task and ready to take on these responsibilities?