With a very few exceptions, such as being an undischarged bankrupt or having already been disqualified as a director, virtually anyone can take up a position as a company director. However, there is a wealth of difference between being appointed as a director and having the skills and knowledge required to be an effective leader of your organisation.

Being a company director comes with a great responsibility; not only for the safety and future of your company but also for its workforce, customers, suppliers, investors and the wider constituency. The gov.uk guidance on being a company director may lead with the legal requirements to deliver certain annual returns, but it also highlights the general and specific duties associated with the role.

This guidance was updated on 10 July to add a link to the director information hub which itself is produced by the insolvency service. And whilst taking a look at that hub might seem a little negative, it is well worth a look. It does cover topics such as five signs that a company might be in financial distress but it also provides links to advice on how to turn a business around at the first signs of problems.

That aside, what areas of training might benefit company directors?

• Understand your obligations. The government guidance sets out the requirements of a director as set out in the Companies Act 2006. Importantly the guidance highlights the fact that these requirements apply even if an individual is not active in their role as a director or is being told what to do by another individual.
• Planning & risk management. Directors need to not only manage the day to day but also anticipate and plan for the future. Taking time out to train in planning skills now could help to avoid costly and ineffectual decisions being made in the future.
• Communication. Planning is only a piece of disposable paper unless those plans can be put into place. Effective communication skills can not only help employees to understand their role in delivering the future but also explain the direction of the organisation to potential and current investors.
• Consultation. No one is an island so the saying goes and that is as true of company directors as of anyone else. Learning to consult, to draw on expertise both inside and outside the organisation can help directors to bring a rich mix of expertise to the benefit of the company.