No company can run without the proper staff and that includes the management team and the director, as well as all the other staff that are needed, right through to the canteen lady and the janitor. Each person has their duties and responsibilities that if done well will all become part of the fabric of the company or organization. Directors duties are probably one of the most important as without a director, the ship is virtually rudderless.
So what does a director do? They don't just walk around ensuring that everyone does what they are supposed to. In fact, that is the managers' job. The director has many other things to attend to and one of the most important is to know what the financial position of the company is at all times, not just at the end of the financial year.
When the director knows what the cash flow is and what the financial position of the company is, it will aid him in making certain decisions that are going to cost the company money. If he - or she - does not know they may well agree to something that costs more than the company can afford. This is highly likely to cause insolvency.
While the director does not need to do the actual record keeping, it is certainly his duty to avail himself of the facts and details about it all. This can be as simple as talking to the company's accountant. Such knowledge must be used to the best effect to bring into the company all that is needed to make it a going concern and keep it powering on into the future.
In addition, with such governance comes great responsibly to act in the best interests of the company, but also to not use such a position to gain benefits for yourself or anyone else, or to cause anything detrimental to happen to the company. The director's position is one of trust and responsibility. They are the recipient of a great deal of confidential information and so must be people who can be trusted to keep that information away from the eyes of others.
Such information could be used in many ways to either benefit themselves or others and to cause harm to the company, its employees and its shareholders. The director must be completely trustworthy and be such a person who will not allow this to happen. It is also important to keep a good record of each meeting minutes so that everything discussed can be seen easily.