Shareholders and Directors
Section 4
HOW TO BE AN EFFECTIVE DIRECTOR AT THE START-UP STAGE
n Work
collectively in a team environment with your fellow directors
and provide leadership.
n In
a start-up situation there will be a blurring of roles because there
are many things to be done with few people and resources, but
even in the busy and demanding times it is important to be clear
about the distinction between executive and non-executive directors
so as to have independent views and governance available to
the company.
n Take
time out to think strategically and overall rather than always
sticking to the comfort zone of your research area and becoming
engaged on operational matters and reviewing past performances –
it is vital to look forward constantly and across the whole business.
n Be
clear about the company's mission and ensure regular and
appropriate dialogue and performance reporting with the
shareholder and stakeholder bases in a coordinated, effective and
even-handed way.
n Be
conscious of the importance of risk management assessments of
the business, particularly cash management (always have the ability
to meet the company's bills) and health and safety (welfare of staff
and customers/visitors).
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