Checklist of background checks for directors
Conducting background checks of proposed directors is essential, not only for ASX-listed companies (or those seeking new listings), but also for prudent and diligent companies that understand the need to minimise their risks.
Although the requirement for background checks is squarely relevant to listed companies and not-for-profits, best practice indicates that all companies, including unlisted companies, undertake background checks on new and proposed directors.
The items detailed in this Checklist of background checks for directors provide a baseline for a person’s suitability for appointment as a company director.
There may be additional factors which a board of directors may consider as part of determining whether the person is suitable for appointment as a company director.
This checklist is available inside Practical Guidance Corporations
, a module which provides fast answers for lawyers working on matters involving company law, corporate governance, share transactions, mergers and acquisitions, insolvency, etc.
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