{"id":56425,"date":"2021-06-10T13:44:31","date_gmt":"2021-06-10T05:44:31","guid":{"rendered":"https:\/\/zegal.com\/set-up-your-board-of-directors\/"},"modified":"2025-01-22T12:49:17","modified_gmt":"2025-01-22T04:49:17","slug":"set-up-your-board-of-directors","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/","title":{"rendered":"Set up your board of directors"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/#What_are_the_steps\" >What are the steps?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/#How_to_do_it\" >How to do it<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/#Step_1_Decide_on_a_clear_reporting_structure\" >Step 1: Decide on a clear reporting structure&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/#Step_2_Consult_the_company_constitution\" >Step 2: Consult the company constitution&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/#Step_3_Execute_a_Directors_Service_Contract\" >Step 3: Execute a Director\u2019s Service Contract<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-steps\"><span class=\"ez-toc-section\" id=\"What_are_the_steps\"><\/span>What are the steps?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-video\"><video autoplay loop muted poster=\"https:\/\/zegal.com\/wp-content\/uploads\/2021\/07\/manage-your-board.jpg\" src=\"blob:https:\/\/zegal.com\/6fa98041-3a90-4d9c-b01b-affa8bc74c88\" playsinline><\/video><\/figure>\n\n\n\n<p>For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board is responsible for governing a business, as well as setting the strategic direction. In the first instance, when you set up your board, it\u2019s a good idea to look at the areas of knowledge or experience you are missing. Principally, this is a great way to decide what gaps you need to fill in your board.<\/p>\n\n\n\n<p>Generally, startups often have just one board director. This is the minimum for a private limited company. However, as a business grows and takes shape, sharing the responsibility with additional board members often becomes necessary.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-do-it\"><span class=\"ez-toc-section\" id=\"How_to_do_it\"><\/span>How to do it<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-1-decide-on-a-clear-reporting-structure\"><span class=\"ez-toc-section\" id=\"Step_1_Decide_on_a_clear_reporting_structure\"><\/span>Step 1: Decide on a clear reporting structure&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Firstly, defining who reports to whom is an important first step. Oftentimes, a company will have a non-executive chairman to oversee the business; a managing director to run the business; a team of executive directors who report to the MD in areas like finance, marketing, etc; and sometimes, non-executive directors to advise on strategy or give independent perspective for any grievances from shareholders.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-2-consult-the-company-constitution\"><span class=\"ez-toc-section\" id=\"Step_2_Consult_the_company_constitution\"><\/span>Step 2: Consult the company constitution&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Ordinarily, the constitution of the company will detail the procedure for appointing company directors. Typically, you may use an <a href=\"https:\/\/zegal.com\/en-au\/shareholders-resolution-to-appoint-directors\/#:~:text=Normally%2C%20a%20Shareholders'%20Resolution%20to,options%20when%20using%20this%20resolution.\"><strong>ordinary resolution<\/strong><\/a> to appoint any board directors during a <strong>general meeting<\/strong>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-step-3-execute-a-director-s-service-contract\"><span class=\"ez-toc-section\" id=\"Step_3_Execute_a_Directors_Service_Contract\"><\/span>Step 3: Execute a Director\u2019s Service Contract<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Finally, have the Director sign a <a href=\"https:\/\/zegal.com\/en-au\/directors-service-contract\/\">Director&#8217;s Service Contract<\/a> (if the company is hiring a director as an employee). However, if this is not the case, you can use a simpler <a href=\"https:\/\/zegal.com\/en-au\/non-executive-directors-letter-of-appointment\/\">Non-executive Director\u2019s Letter of Appointment.<\/a><\/p>\n\n\n\n\t<section class=\"call-to-action-buttons\">\n\t\t<div class=\"zegal-container\">\n\t\t\t\t\t\t\t\t\n\t\t\t\t<div class=\"cta-buttons\">\n\n\n\t\t\t\t\t<div class=\"cta-buttons-title-button \">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h5>Need to draft one now?<\/h5>\n\t\t\t\t\t\t\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-1\" href=\"#register\" >\n\t\t\t\t\t\t\t\tDirector&#8217;s Service Agreement\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cta-btn-link cta-btn-link-2\" href=\"#\" >\n\t\t\t\t\t\t\t\tNon-Executive Director&#8217;s Letter of Appointment\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the steps? For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board is responsible for governing a business, as well as setting the strategic direction. In the first instance, when you set up your board, it\u2019s a good idea to look [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":0,"parent":55261,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[13556],"meta":{"_acf_changed":true,"_editorskit_title_hidden":false,"_editorskit_reading_time":1,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[],"class_list":["post-56425","page","type-page","status-publish","hentry","template-board-and-directors-resolutions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Set up your board of directors | Zegal Australia<\/title>\n<meta name=\"description\" content=\"What are the steps? For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/pages\/56425\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Set up your board of directors\" \/>\n<meta property=\"og:description\" content=\"What are the steps? For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/\" \/>\n<meta property=\"og:site_name\" content=\"Zegal Australia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/getzegal\/\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-22T04:49:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zegal.com\/wp-content\/uploads\/2023\/09\/zegal-logo-red.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@getzegal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/use-case\\\/set-up-your-board-of-directors\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/use-case\\\/set-up-your-board-of-directors\\\/\",\"name\":\"Set up your board of directors | Zegal Australia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#website\"},\"datePublished\":\"2021-06-10T05:44:31+00:00\",\"dateModified\":\"2025-01-22T04:49:17+00:00\",\"description\":\"What are the steps? For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/use-case\\\/set-up-your-board-of-directors\\\/#breadcrumb\"},\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/zegal.com\\\/en-au\\\/use-case\\\/set-up-your-board-of-directors\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/use-case\\\/set-up-your-board-of-directors\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Legal Templates\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/all-docs\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Use Case\",\"item\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/use-case\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Set up your board of directors\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#website\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/\",\"name\":\"Zegal Australia\",\"description\":\"Need legal? Click Zegal.\",\"publisher\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-AU\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#organization\",\"name\":\"Zegal Australia\",\"url\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/zegal.com\\\/wp-content\\\/uploads\\\/2021\\\/11\\\/zegal-logo-white.png\",\"contentUrl\":\"https:\\\/\\\/zegal.com\\\/wp-content\\\/uploads\\\/2021\\\/11\\\/zegal-logo-white.png\",\"width\":200,\"height\":69,\"caption\":\"Zegal Australia\"},\"image\":{\"@id\":\"https:\\\/\\\/zegal.com\\\/en-au\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/getzegal\\\/\",\"https:\\\/\\\/x.com\\\/getzegal\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/getzegal\\\/\",\"https:\\\/\\\/www.youtube.com\\\/@legalzegal\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Set up your board of directors | Zegal Australia","description":"What are the steps? For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/pages\/56425\/","og_locale":"en_US","og_type":"article","og_title":"Set up your board of directors","og_description":"What are the steps? For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board","og_url":"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/","og_site_name":"Zegal Australia","article_publisher":"https:\/\/www.facebook.com\/getzegal\/","article_modified_time":"2025-01-22T04:49:17+00:00","og_image":[{"width":1200,"height":627,"url":"https:\/\/zegal.com\/wp-content\/uploads\/2023\/09\/zegal-logo-red.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@getzegal","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/","url":"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/","name":"Set up your board of directors | Zegal Australia","isPartOf":{"@id":"https:\/\/zegal.com\/en-au\/#website"},"datePublished":"2021-06-10T05:44:31+00:00","dateModified":"2025-01-22T04:49:17+00:00","description":"What are the steps? For small businesses and startups \u2014and large companies alike\u2014 how you set up your board of directors is essential. Chiefly, the board","breadcrumb":{"@id":"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/#breadcrumb"},"inLanguage":"en-AU","potentialAction":[{"@type":"ReadAction","target":["https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/zegal.com\/en-au\/use-case\/set-up-your-board-of-directors\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Legal Templates","item":"https:\/\/zegal.com\/en-au\/all-docs\/"},{"@type":"ListItem","position":2,"name":"Use Case","item":"https:\/\/zegal.com\/en-au\/use-case\/"},{"@type":"ListItem","position":3,"name":"Set up your board of directors"}]},{"@type":"WebSite","@id":"https:\/\/zegal.com\/en-au\/#website","url":"https:\/\/zegal.com\/en-au\/","name":"Zegal Australia","description":"Need legal? Click Zegal.","publisher":{"@id":"https:\/\/zegal.com\/en-au\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/zegal.com\/en-au\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-AU"},{"@type":"Organization","@id":"https:\/\/zegal.com\/en-au\/#organization","name":"Zegal Australia","url":"https:\/\/zegal.com\/en-au\/","logo":{"@type":"ImageObject","inLanguage":"en-AU","@id":"https:\/\/zegal.com\/en-au\/#\/schema\/logo\/image\/","url":"https:\/\/zegal.com\/wp-content\/uploads\/2021\/11\/zegal-logo-white.png","contentUrl":"https:\/\/zegal.com\/wp-content\/uploads\/2021\/11\/zegal-logo-white.png","width":200,"height":69,"caption":"Zegal Australia"},"image":{"@id":"https:\/\/zegal.com\/en-au\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/getzegal\/","https:\/\/x.com\/getzegal","https:\/\/www.linkedin.com\/company\/getzegal\/","https:\/\/www.youtube.com\/@legalzegal"]}]}},"_links":{"self":[{"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/pages\/56425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/users\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/comments?post=56425"}],"version-history":[{"count":0,"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/pages\/56425\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/pages\/55261"}],"wp:attachment":[{"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/media?parent=56425"}],"wp:term":[{"taxonomy":"template","embeddable":true,"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/template?post=56425"},{"taxonomy":"usecases","embeddable":true,"href":"https:\/\/zegal.com\/en-au\/wp-json\/wp\/v2\/usecases?post=56425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}