The Corporations Law and the general principles of corporate governance require a Director to diligently perform his/her duties.
Many Directors have found the use of a checklist assists them in ensuring that they and their fellow
directors are receiving adequate information to enable them to perform their duties diligently.
Some of the items that the directors should be asking for include: - Monthly report prepared by the Chief Executive Officer
- Monthly financial report prepared by the Accountant or Chief Financial Officer containing:
- Detailed Trading and Profit & Loss Account, preferably on a departmentalised basis
- Balance Sheet
- Report showing actual performance vs. budget
- Report on Sundry Debtors (including Debtors' Aged Analysis)
- Report on Sundry Creditors
- Bank Position
- Cost of Stock & Work in Progress
- Details of any creditor or other liability that has not been paid in accordance with the supplier's terms of trade and in particular details of any amounts that are outstanding to the IRD, Income Tax, PAYE etc.
- Details should also be submitted of any superannuation payments that are outstanding
- Details of any litigation started by the company or against the company
- Details of any harassment allegations made by any employee or other person against anyone associated with the company
- Confirmation that all government statutory documents required to be lodged during the previous month were lodged on time. This would include lodgement of:
- Annual Returns to Companies Office
- Income Tax Returns
- Fringe Benefit Tax Return
- Business Activity Statement
- Grant Applications
- Details of any correspondence from the company's insurer relating to increased premiums or rejection of a claim
- Management Meeting Minutes
- Updated Budget & Cashflow Forecasts
- Periodically during the year, Directors should be receiving reports on:
- Staff Turnover
- Staff Evaluations
- Staff Salaries
- Customer Survey Results
- Business Plan Implementation
- Internal Control Review
- Reports from the Audit Committee (if the company has one)
- Summary of exit interviews conducted by the company