Directors may also refer to the Guidelines for Directors Tool2 published by the Hong Kong Institute of Directors for more information on what functions and duties that a company director is required to perform. Professionals’ failure as the corporate guardians Professionals, such as auditors, lawyers and chartered secretaries, provide valuable services as advisors to company directors and as guardians watching out for malpractices, non-compliance with regulatory requirements and illegal acts committed by officers in the company. However, there have been cases where some professionals have neglected their guardian role and even conspired with company directors for their own personal gain. As in most of the cases, the masterminds could not succeed without the assistance of their senior executives or professional advisors. Company directors should identify the strengths of their professional advisors and depend on their support to facilitate the sound performance of their duties and responsibilities. Tool 1. Ethics Checklist for Company Directors Annex 2 A full copy Tool 2. Guidelines for Directors, The Hong Kong Institute of Directors The publication is a reference book assisting both practising and newly appointed directors in fulfilling their duties. Issues addressed in it include the functions of directors, how the board operates, as well as directors’ legal status, powers and duties. The Guidelines can be downloaded from the following website: www.hkiod.com/guidelines-for-directors.html Part 3 ASSESSMENT Mitigating the Risks Part 3 ASSESSMENT Mitigating the Risks To drive a corporation towards perpetual success, strong awareness of one’s role, power, related laws and regulations are only some of the critical factors. Company directors should constantly monitor their business operations to anticipate and mitigate risks
Directors may also refer to the Guidelines for Directors Tool2 published by the Hong Kong Institute of Directors for more information on what functions and duties that a company director is required to perform. Professionals’ failure as the corporate guardians Professionals, such as auditors, lawyers and chartered secretaries, provide valuable services as advisors to company directors and as guardians watching out for malpractices, non-compliance with regulatory requirements and illegal acts committed by officers in the company. However, there have been cases where some professionals have neglected their guardian role and even conspired with company directors for their own personal gain. As in most of the cases, the masterminds could not succeed without the assistance of their senior executives or professional advisors. Company directors should identify the strengths of their professional advisors and depend on their support to facilitate the sound performance of their duties and responsibilities. Tool 1. Ethics Checklist for Company Directors Annex 2 A full copy Tool 2. Guidelines for Directors, The Hong Kong Institute of Directors The publication is a reference book assisting both practising and newly appointed directors in fulfilling their duties. Issues addressed in it include the functions of directors, how the board operates, as well as directors’ legal status, powers and duties. The Guidelines can be downloaded from the following website: www.hkiod.com/guidelines-for-directors.html Part 3 ASSESSMENT Mitigating the Risks Part 3 ASSESSMENT Mitigating the Risks To drive a corporation towards perpetual success, strong awareness of one’s role, power, related laws and regulations are only some of the critical factors. Company directors should constantly monitor their business operations to anticipate and mitigate risks