Onboarding Directors - Special Book Launch Edition!
This week saw the launch of my first book "How to Avoid a fall from Grace: Legal Lessons for Directors". First in New York City and then in my home town of Adelaide. Visit legallessons.com.au to purchase a copy.
In keeping with the directors theme, this week on You Legal TV we look at onboarding directors. This is the steps you need to take to ensure a smooth appointment and transition for both the new director and the existing team.
Tune in as I count them down from 10 to 1.
See below for complete transcript of this episode -
Onboarding. It might sound like a torture technique, but it is actually the process by which directors acquire the necessary skills and knowledge to become the board member you want them to be.
Today we give you ten steps to a successful onboarding.
The first step is always undertaking due diligence. No one likes a nasty surprise, and a thorough due diligence process will ensure the company will be satisfied that the director posses the necessary skills and the director to be will be comfortable with the amount of risk and commitment required.
Step number is 2 is to obtain valid consent in accordance with the Corporations Act, and that means in writing!
Step 3 is to then notify ASIC within 28 days of and if necessary also the ASX (who must be notified immediately).
Step 4 is the letter of appointment. Although consent has already been obtained, a detailed letter of appointment setting out important information, especially the time commitment and the company policies the director will be subject is an important step.
Step 5 is the induction process. An induction process will not only help a new director get their bearings but help a company streamline their expectation. Short and sweet or long and detailed it will ensure a smooth transition to the role.
Step 6 - Deeds of Access and Indemnity – cover the company in terms of access to information and director for liability.
Which transition us to step 7. Director and Officer Insurance, it’s a good thing, and you should get it.
Step 8 is Codes, policies and charter Which Put the director on notice as to what is required and needs to be abided by. Covering everything from codes of conduct to diversity policies they will be the tools for good corporate governance.
Step 9 - Communication is key to a successful board. Beginning with clear communication between the board and Depending on your company this could encompass media training.
And finally step 10 Professional development will ensure that your directors are always at the top of their game.
These 10 steps to director onboarding provide a robust blueprint to ensure a match made in corporate heaven and a smooth learning curve for both parties and, remember that You Legal is here to help you with every step of the way when it comes to appointing directors.
What Should I Do Next?
Contact us if you would like further legal advice on Onboarding Directors and/or corporate governance issues. Our lawyers at You Legal will be happy to assist you in whatever way we can.
Download Our E-Book: "How to Avoid a Fall from Grace"
* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.