Being a director does not make a person an employee of the company as directorship is an office, not necessarily employment. If, however, the company enters into a Contract of Service with the director, with terms making the director an employee under the common law test, then the director becomes an employee. In these circumstances, relevant aspects of employment law including statutory protection as to unfair dismissal and redundancy apply in addition to the law relating to directors.

As an employee, the director will be bound by the provisions of their contract of service as well as by the implied terms in an employment relationship.  These include the implied terms of mutual trust and confidence, to act in good faith and not to disclose confidential information.

The salaries of directors who are also employees will be in accordance with the terms of their contracts of employment or service agreements.

Directors who are employees are usually mandated to carry out the tasks highlighted below.

  1. Board Governance:
  • Leading the company in a manner that aligns with the vision of the board.
  • Communicate well, in a timely and accurate manner, all information necessary for the board to be able to carry out its functions.
  • Provide strategic advice to the members of the board to keep them aware of developments within the industry.
  • Ensure that the appropriate policies are developed to meet the company’s mission and objectives.
  • Ensure statutory compliance.
  1. Financial Responsibility:
  • Develop resources that are sufficient enough to ensure the financial health of the organization.
  • Fund raising and developing other sources of revenue.
  • Preparation and submission a well-articulated fiscal report to the board including monthly budgets which reflect the true financial state of the company.
  • Ensure maximum resource utilization, and works towards achieving economies of scale.
  1. Organisation and Mission strategy:
  • Work with board and staff to ensure that the company’s mission is fulfilled through implementation of programs, strategic planning and community outreach.
  • Enhancement of the company’s image by being active and visible in the community and by working closely with other professionals, civic and private organizations.
  • Preparation of corporate and annual business plans, and monitoring progress against these plans to ensure that the company attains its objectives cost effectively.
  1. Organization Operations:
  • Overseeing and implementation of appropriate resources to ensure that the operations of the organization are appropriate.
  • Hiring and retention of competent, qualified staff.
  • Direct and control the work of resources of the company to ensure the recruitment and retention of required numbers and types of well-motivated, trained and developed staff to ensure that it achieves its mission and objectives.
  • Responsible for effective administration of operations.
  • Responsible for signing all notes, agreements, and other instruments made and entered into and on behalf of the organization.
  • Develop and maintain research and development programmes to ensure that the company remains at the forefront in the industry, applies the most cost-effective methods and approaches, provides leading-edge products and services and retains its competitive edge.
  • Develop and maintain an effective marketing and public relations strategy to promote the products, services and image of the company in the wider community.
  1. Liaison between organization and stakeholders:
  • Appearing at official events.
  • Liaison between the organization and external stakeholders.
  • Develop and maintain relationships with not-for-profit organization leaders.
  • Work closely with leaders of other companies to cultivate strong and long term strategic relationships to increase the company’s effectiveness.
  • Establish professional contacts that can be of significant value to the company.
  • Establish and maintain effective formal and informal links with major customers, relevant government departments and agencies, local authorities, key decision-makers and other stakeholders generally, to exchange information and views and to ensure that the company is providing the appropriate range and quality of services.

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