Joining a board of directors is a significant responsibility that requires careful preparation. Whether you’re an experienced executive or an aspiring board member, ensuring you are fully equipped for the role is crucial. Here are five key steps to help you get board-ready and excel in your directorship.
1. Obtain your Director Identification Number (DIN)
Before serving on a board, you must acquire a Director Identification Number (DIN). This unique identifier, issued by the Australian Business Registry Services (ABRS), helps track directors across different companies and prevents fraudulent activities.
To apply for a DIN, you must submit an application along with proof of identity and address. Directors who fail to comply within the specified timeframe may face infringement notices, civil penalties, or even criminal consequences.
2. Secure personal asset protection
As a company director, your personal assets may be exposed in the event of legal action, financial collapse, or regulatory breaches. In Australia, there are over 150 laws that can make directors personally liable — even if the issue lies within the operations of the business. You may be held personally accountable for such things as:
- Trading while insolvent;
- Wage theft;
- Cybersecurity failures;
- Industrial manslaughter; and
- Environmental offences.
To safeguard yourself, it’s essential to implement a personal asset protection strategy, such as:
- Separating personal and business assets
- Holding assets in trusts or adopting other asset protection strategies
- Reviewing insurance cover (e.g. Directors & Officers (D&O) liability insurance)
- Getting legal and financial advice tailored to your circumstances
A strong protection plan can give you the confidence to govern effectively without putting your personal wealth at risk.
Protect what matters most; your personal assets and family’s future. Our experts ensure your liability is limited so if your business faces tough times, your wealth stays safe. Call us on 1300 654 590 or email us to get started.
3. Understand your role and responsibilities
Each board member brings unique expertise, but it’s essential to clearly understand your role and duties. To prepare:
- Review governance documents (e.g. company constitution, shareholder agreements, board charters)
- Understand the company’s strategic goals and current financial position
- Set clear expectations with the chair and fellow directors
- Commit to continuous professional development in governance and risk
A knowledgeable director is a valuable director — one who can ask the right questions and guide the company wisely.
4. Get to know the company
Before stepping into the boardroom, take time to familiarise yourself with the company’s:
- Operations and business model
- Industry position and competitors
- Culture, values, and internal dynamics
- Key people — from executives to shareholders
Attending company events, engaging with leadership, and reading annual reports will help you bring meaningful insight and contribute to strategic decisions from day one.
5. Understand your legal liabilities
Board positions carry weighty legal responsibilities. Directors are subject to a wide range of obligations under federal and state laws including the Corporations Act 2001 (Cth), Fair Work Act 2009 (Cth) and Work Health and Safety legislation.
Non-compliance can result in fines, bans, or personal liability. Staying legally literate is not optional, it’s essential. Consider:
- Participating in legal briefings or governance courses
- Seeking legal advice before making contentious decisions
- Maintaining detailed records of your involvement and decisions
We can provide a comprehensive summary the legal responsibilities that comes with your board position. Call us on 1300 654 590 or email us for tailored advice to ensure you stay protected and compliant.
Final checklist: are you board-ready?
A board role is a significant step. Now you know the 5 essential steps to joining a board, here is your ‘to do’ list:
- Apply for and receive your Director Identification Number (DIN)
- Put in place a personal asset protection strategy
- Review all governance documents relevant to your role
- Familiarise yourself with the company’s business, risks, and culture
- Identify and prepared for your legal duties as a director
- Consider insurance options (D&O cover, indemnity, etc.)
- Begin or commit to ongoing director education
Prepare for board success
Becoming board-ready requires proactive preparation and ongoing development.
If you need expert legal advice on board governance and personal liability protection contact us today to ensure you’re fully prepared for your board role. Call us on 1300 654 590 or email us to discuss your board readiness journey.
The information contained in this post is current at the date of editing – 20 January 2026.
