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Does your business need a Manager or a Director? [Part 2] Demystifying Directors.



As discussed in Part 1, a director has roles that are distinct from that of a manager. A director can be an employee or non-member of the business appointed by the shareholder at its general meeting. The director oversees the management and monitors the implementation of the business strategy.


Directors are jointly referred to as ‘the Board’ or ‘Board of Directors.’ They are the governing (decision-making) body that sets the vision and direction of the business and guides the policies, plans and strategies.


A director directs the business, while a manager manages the day-to-day operations. A manager performs his/her duties only relative to what the director prescribes. Here are some distinct aspects of a director’s role in a business.


Expectations of a director:

1. On vision: Directors define the business vision, setting the standards and principles of the business.

2. On leadership: The director is the one who gives fundamental focus and governance to the business. He is like the legislative arm of government that makes and decides the law that will govern your business.

3. On functions: Directors provide overall direction for the business. They oversee the programs and procedures and ensure that managers carry out their duties diligently to implement the strategy.

4. On planning: Directors set the vision and the long-term strategic plan of the business.

5. On accountability: Directors are appointed by the shareholders and remain accountable to the shareholders and other stakeholders of the business.


Directors have a greater responsibility than managers because they determine the culture, practices, and to a large extent, the failure or success of the business.

Sign up for my Corporate Governance Training Programs every weekend in May to know what to look out for when choosing a director and give the best incentives to keep this employee when you find a good fit for your business.

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