Business Governance
Every limited company has to have a least one director. A public limited company (PLC) must have at least two directors. There are limits on who can be a director and you cannot be appointed if you:
- Have been disqualified by a court from being a director
- Are an un-discharged bankrupt
- Are under the age of 16
The Company’s Act 2006 outlines eight general duties:
- Act in the company’s best interests, taking everything you think relevant into account
- Obey the company’s constitution and decisions taken under it
- Be honest, and remember that the company’s property belongs to it and not to you or to its shareholders
- Be diligent, careful and well-informed about the company’s affairs. If you have any special skills or experience, use them
- Make sure the company keeps records of your decisions
- Remember that you remain responsible for the work you give to others
- Avoid situations where your interests conflict with those of the company. When in doubt disclose potential conflicts quickly
- Seek external advice where necessary, particularly if the company is in financial difficulty
Feel free to request the templates laura@thehiddenedge.co.uk. I am happy to share.
1. Recognise the six key issues a board needs to consider from a governance perspective
2. Recognise the four types of governing behaviour which are determined by the extent (time and energy) and nature (level of strategic focus of engagement
3. Use this business model to open up a discussion around appropriate governance of your business with the board.
Please do share your experiences with these models in the comments below. I am building a portfolio of small business case studies and would love to include examples of what has worked well for you.
PS – If you need further help then give me a call on 07962 626604 to arrange a Skype session with me.
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Laura McHarrie @ The Hidden Edge 