The Financial Markets Authority (FMA) and the Institute of Directors in
New Zealand (IoD) have released ‘A Director’s Guide’: a must-read
for all current and aspiring directors.
The guide sets out the essentials of being an effective director and includes: questions to ask before you take up a directorship; decision making; legal requirements for signing off financial statements; and what you should do when things go wrong.
FMA CEO, Sean Hughes, said being a director is more than just a title and that ‘A Director’s Guide’ will help directors understand their obligations, particularly first time directors of small and medium-sized companies, and directors of family businesses.
“Being a director can be challenging but it can also be incredibly rewarding. This guide will act as a useful roadmap for directors to turn to,” said Mr Hughes.
“If directors keep their feet on the ground, and are alert to the risks and realities of what is happening around them, then they should feel confident that they are performing the most important duties and responsibilities of a director.”
IoD CEO, Ralph Chivers, said this guide is part of the IoD’s commitment to increasing the standard of governance in New Zealand. Good governance is ultimately a framework for making good decisions and this guide will assist aspiring directors to understand that framework.
“There is now and has always been a very high standard of care and diligence expected of directors, especially in matters relating to the management of other people’s money. Having the right knowledge and skill set to execute those responsibilities is essential for directors,” said Mr Chivers.
“It is also vital that directors are committed to on-going personal development to ensure that their knowledge and skills remain current and that they are doing the best job possible.”
A copy of ‘A Director’s Guide’ can be found here.
The guide sets out the essentials of being an effective director and includes: questions to ask before you take up a directorship; decision making; legal requirements for signing off financial statements; and what you should do when things go wrong.
FMA CEO, Sean Hughes, said being a director is more than just a title and that ‘A Director’s Guide’ will help directors understand their obligations, particularly first time directors of small and medium-sized companies, and directors of family businesses.
“Being a director can be challenging but it can also be incredibly rewarding. This guide will act as a useful roadmap for directors to turn to,” said Mr Hughes.
“If directors keep their feet on the ground, and are alert to the risks and realities of what is happening around them, then they should feel confident that they are performing the most important duties and responsibilities of a director.”
IoD CEO, Ralph Chivers, said this guide is part of the IoD’s commitment to increasing the standard of governance in New Zealand. Good governance is ultimately a framework for making good decisions and this guide will assist aspiring directors to understand that framework.
“There is now and has always been a very high standard of care and diligence expected of directors, especially in matters relating to the management of other people’s money. Having the right knowledge and skill set to execute those responsibilities is essential for directors,” said Mr Chivers.
“It is also vital that directors are committed to on-going personal development to ensure that their knowledge and skills remain current and that they are doing the best job possible.”
A copy of ‘A Director’s Guide’ can be found here.
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