Being a director comes with significant risks

In a recent presentation I attended given by David Gonski at the Governance Summit held by the Australian Institute of Company Directors (AICD), Mr Gonski laid out some issues an individual should consider before taking on a directorship.

Considerations prior to accepting an appointment as a director

One key area discussed by Mr Gonski during his speech was that it is important to understand your personal strengths and weaknesses and give them due weight. Rarely do we take stock of our own strengths and weaknesses, but as a director, it is crucial to be comfortable with relying on others in areas of expertise and financial performance. You should ask yourself what you can bring to the board and be able to answer the following prior to being appointed: