What is the role of a Trustee / Director?

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The role of a Trustee / Director

A trustee / director (called director from here on in) is a member of the board of directors of a company or an organisation. Most trustees are likely to be directors of a legal entity which is usually a company limited by guarantee (CLG).

The role of directors is to provide objective and independent advice to the board to enable it to make better decisions in the interest of the charity and stakeholders.

For charities, all directors are non-executive, that is they do not work in the organisation on a paid basis.

They will be appointed as directors with the company for a defined period of time. They are not a member of the executive management team who are employed by the company. In charities, employees are not permitted to be directors.

Directors provide independent oversight and serve on committees concerned with Audit and Risk, Remuneration etc. They are not permitted to be paid a fee under current legislation.

All directors should be capable of seeing company and business issues in a broad strategic perspective. Nonetheless, directors are usually chosen because of their independence and objectivity, are of the appropriate calibre, have relevant skills, experience and personal qualities.

Download role and responsibilities of the Trustee / Director here

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