Management experience does not automatically prepare someone for the duties of a director, because those duties differ by role and jurisdiction and may require independent scrutiny of financial information and management's proposals. Completion of a training programme is useful evidence of preparation; the more important test is whether you can apply the learning to board decisions.
Where to start
- Compare director programmes by jurisdiction, faculty, assessment method and opportunities to work through realistic board decisions. Check that the course covers the law and governance requirements relevant to your target roles.
- Work through a published annual report as a director would, considering performance, cash flow, principal risks, internal controls and related-party transactions together.
- Map the duties attached to each target role, or to the board you now serve, under the applicable law, governing documents and relevant sector codes.
Ask yourself
- Can I explain the difference between directors' legal duties and the authority delegated to management?
- Can I read the income statement, cash flow statement and balance sheet together without relying only on management's explanation?
- Do I know when advice from a regulator, company secretary, auditor or independent legal adviser may be needed?
What you keep Evidence of completing a director programme, a worked review of an annual report and a record of the duties relevant to your target roles.
In practice A well-prepared director reviews board papers critically and identifies information that may be missing, inconsistent or insufficient for a decision, which is why training should provide opportunities to practise those judgements before they are required in a board meeting.
The eight foundation briefings
Each of the eight briefings includes four short lessons and a scored self-check covering directors' duties, board committees, financial controls and appointment processes.