Directors

What is required of a director?

Directors have a duty:

• of care and diligence
• not to improperly use their position or information
• not to trade while insolvent
• of good faith
• to disclose conflicts of interest

A person appointed or reappointed for another term as a director is required to apply for a director ID before they're appointed.

A director’s obligations

As a director together with the other directors, you will control the corporation’s business. The corporation’s rule book will set out the powers and functions of the directors.

A director has a common law right to inspect documents of the corporation, if required, in order to assess the corporation’s performance.

A director must:

• be fully up to date on what the corporation is doing
• find out for himself or herself how any proposed action will affect the corporation’s business performance, especially if it involves a substantial amount of the corporation’s money
• obtain outside professional advice when required to make an informed decision
• ask questions of managers and staff through the chair at directors' meetings about how the corporation is going
• take an active part in directors' meetings.

Remember, only be a director if you are willing to put in the effort.