10 Questions to ask before joining a Board

Joining a board is a significant commitment, and asking the right questions can provide valuable insights into the responsibilities, culture, and expectations associated with the role. Here are ten questions to consider asking before joining a board:

Can you tell me about the business?

• What does the business do?
• How does it make money?
• What is its sustainable competitive advantage?
• What is the biggest challenge facing the company?
• What is its biggest threat?
• What is the biggest opportunity?
• Could you please describe the culture?

What is the company’s current financial position?

• What is the current and forecast cash flow, borrowings and interest cover?
• Can I speak with the Chair of the Audit Committee?
• Who is the Auditor, are there any current disputes with them?
• What accounting standards and policies have been used by the business?

What legal and regulatory environments does the company operate in?

• Are there any legal actions or major disputes pending against the company, including action by any regulator?
• How does the board oversee risk management?
• What is the legal form of the business?

What is the quality of the information which I will be provided with?

• the last 12 months’ board minutes and any committee minutes;
• the last set of board papers;
• the last two years’ annual reports;
• the board charter and any committee charters; and
• the company’s code of ethics and /or conduct.

• What protocols are in place for directors having access to management outside of board meetings?

Can you please tell me about the board?

• Who is the Chair?
• Who are the other directors?
• How long have they been on the board?
• Who is the CEO? Can I meet them?
• What are the relationships between the directors, and between the directors and the CEO, like?

Why does the board need a new director and what are they looking for?

• What contribution am I expected to make?
• Is there a draft letter of appointment I could review?
• Why are you seeking a new director now?
• Is someone leaving? Can I speak with them?
• What are you looking for in a new director?
• Why did you approach me?
• Who else will be joining at the same time?
• Is there a succession plan for the board, and in particular the Chair?

Who are the shareholders and stakeholders?

• What is the ownership/corporate structure of the company?
• What is the current attitude of shareholders and stakeholders to the company, board and management?
• What is the attitude of the board to stakeholders?
• Has the company been receiving positive or negative media coverage lately?
• What happens at AGMs and how are they run?

Why am I interested in taking this directorship?

What can I contribute?

Do I have the capacity to do the job?

• What is the time commitment?
• When, where and how long are the meetings?
• What style of meeting does the Chair favour?
• What does it pay?
• Will I be expected to buy/sell shares?
• Can I see a copy of the Directors and Officers insurance policy?
• Do I have any conflicts of interest?