Responsibilities And Role Of A Company Director (And Skills)

Indeed Editorial Team

Updated 22 November 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Company directors are a key component of an organisation's senior management team, and they can possess exceptional managerial and leadership qualities. These individuals oversee the company's daily activities, making sure that the staff are working effectively toward the organisation's goals. Learning about the roles of a company director can assist you in determining if you possess the skills and qualities to apply for the position. In this article, we discuss the roles of a company director, list the skills needed for a company director's role and highlight how to become one.

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What Is The Role Of A Company Director?

The role of a company director is to handle the daily operations of the organisation. They make significant strategic and operational decisions that ensure the company meets its objectives. If the company has shareholders, the director may be accountable for them. It is important for the director to balance investors' interests and those of the company and its employees. The company's director may have a sense of ethics and can make decisions consistent with government laws regulating business operations. The following is a list of critical responsibilities of a company director:

  • Create key performance indicators (KPIs) to help employees focus their efforts

  • Coordinate community social responsibility projects with other company professionals

  • Encourage compliance with business rules and regulations and assure conformity with the company's code of ethics

  • Supervise the daily operations of the business

  • Ensure that company records are secure and maintained well

  • Ensure that business actions adhere to current legislation

  • Invite shareholders to annual meetings

  • Plan for the management and improvement of business operations and affairs

  • Supervise the development and submission of statutory papers to appropriate agencies

  • Verify that the business' operations adhere to the company constitution

  • Work with other executives to develop projects that can help the business grow

  • Oversee the development of efficient corporate policies for the benefit of the company

  • Make sure that staff work in a healthy environment

  • Handle the relationship between the organisation and its commercial partners

  • Track the company's development and success

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How To Become A Company Director

It may be important for you to have the academic credentials and essential skills to become the director of a company. Here are some steps to become a company director:

1. Acquire a degree

Earning a bachelor's degree can be the first step toward becoming a company director. Directors typically have degrees in business, accounting and finance. You may also require higher academic credentials to enhance your chances of being hired. An MBA can help you distinguish yourself from other applicants and increase your appeal.

2. Get specialised training

Along with the academic credentials, directors may require professional training. Professional associations such as India's Institute of Directors provide educational opportunities for aspiring directors. The practical experience gained through such programmes can significantly increase your prospects of becoming a company director.

3. Gain relevant experience

For any prospective director, experience can be critical. Corporate directorships can be very competitive, and employers usually mention experience as a key distinction between candidates. Directors are responsible for supervising many projects concurrently and ensuring that they all function well. It is essential to begin managing projects to prepare for the responsibilities associated with the director's position. It is vital for company directors to be good leaders and motivators to their workforce. Volunteering on the board of a non-profit organisation can be an excellent opportunity for future directors to acquire expertise and experience.

4. Select appropriate mentors

Try to build a relationship with a current company director to improve your chances of employment as a company director. Getting mentored by an experienced director can introduce you to the position's inner workings. A mentor can teach you the methods and tips necessary to improve your skills and obtain the director's position.

5. Develop relationships with investors

Frequently, investors and shareholders decide who becomes a company director. Thus, it may make sense to cultivate relationships with investors in a certain industry to secure a position as a company director. Take the time to develop your presentation before approaching investors.

Investors like to appoint directors who can communicate their value. It is also a good idea to network with current directors if you are interested in joining the board of directors. Certain boards may solicit recommendations from current members for qualified individuals to fill vacant positions.

Related: What Is An Executive Director? (Skills And Career Advice)

6. Make a commitment to ongoing learning

The corporate world is always expanding, and to be an effective company director, it may be vital for you to stay informed of new advancements. Continuing education can help you gain a better understanding of the sector and increase your employability. You can join associations that host conferences and create educational opportunities for directors and aspiring directors.

Important Skills For A Company Director

Excellent company directors can possess strong decision-making abilities. This ability can be critical for managing the strategic decisions that can determine a company's productivity. The following are some of the most important skills that corporate directors may require:

Management skills

Supervising and delegating work effectively may enable you to maximise your time, resources and productivity. To allocate duties and set attainable goals, it may be vital for company directors to have a complete understanding of each employee's and department's strengths. Strong managerial skills may involve providing your organisation with the training and resources necessary to achieve its objectives. Good management skills may also include the ability to prioritise duties to get the best results in the shortest amount of time.

Written and verbal communication skills

As a director, you may frequently be in contact with other executives and employees within the organisation. Strong written and verbal communication skills can be crucial when training new staff, discussing corporate strategies and assigning assignments. Not only does effective communication help in building a relationship with your team, but it also ensures that everyone understands the company's goals and what you expect of them.

Strategic decision-making skills

Company directors make key decisions that may affect a company's present state and direction. Strategic decision-making entails reviewing your organisation's objectives and the associated risks. Making sound, strategic decisions can lead to future growth and development. If an aspect of a system is failing to produce the required outcomes, it is vital for a company director to respond decisively and make timely adjustments.

Analytical skills

Extracting relevant insight from data, information or intelligence about your business or sector can assist you in making strategic decisions that can result in growth. A business leader may be able to understand and recognise the information that is most pertinent to their business objectives. Strong analytical skills can aid in the development of novel solutions to any issues the organisation may encounter.

Adaptability skills

A company director may require being adaptable to effectively respond to changes in the workplace and within their industry. It is vital that directors not only plan but also anticipate unforeseen obstacles that may require adjustments. Adapting rapidly to those adjustments can assist in maintaining a productive workflow.


Developing a creative attitude can enhance productivity and result in organisational success. Directors who demonstrate and support creativity are continuously on the lookout for new ways to enhance and improve operations, identify future development prospects and develop innovative solutions to different problems. Also, innovative thinking can help redefine company models, resulting in significant change and giving your organisation a competitive advantage.

Related: What Is A Managing Director? Guide And Career Advice


Compassion, particularly in a position of leadership, can be crucial for enhancing communication, establishing stronger professional relationships and ensuring employee satisfaction. Empathy shows the ability to understand another person's experience, viewpoint and emotions, which can help employees feel cared for and valued. Empathy can help foster a supportive workplace, and that can result in increased collaboration and productivity. By taking the time to understand your employees' needs better, you can provide them with the help and resources they may require overcoming any obstacles they may encounter.

Visionary leadership

Visionary leadership entails presenting objectives, establishing strategic plans for achieving those objectives and providing the resources necessary to accomplish those objectives. When company directors demonstrate visionary leadership skills, they can bring their organisations together around a common goal, which can help enhance employee engagement, productivity and even provide better results more efficiently. By providing teams with a clear sense of direction, employers can empower individuals to make significant contributions to the organisation's success.


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