What You Need to Know about Director Checks

During the hiring process for a company director, every business needs to verify a prospective candidate’s past or present status as a company director. As the jobseeker, if you’ve ever been asked in a job interview or on an application form whether you’re currently serving as a company director or have been a director in the past, there is a good reason for the prospective organisation to ask this question. 

A company may ask such a question because they may require a director check (also known as a directorship check or directorship verification). Due to the nature of their business, this may be an obligation stipulated by a third party or governing body. Either way, these checks are important, and this short guide is here to help explain why and the implications it can have if they’re not conducted.

What is a Director Check?

Firstly it’s essential to understand the definition of a director check. Director checks involve conducting searches on the extent of directorships that a candidate has held or is currently holding. Essentially, the check is to confirm:

  • How long they have been a director.
  • Any associated incidents during their directorship tenure.
  • Whether they are/were an officeholder or shareholder.

The information disclosed on a directorship check is helpful for employers to confirm a candidate’s history or background, particularly if that candidate is going to be stepping up to a director-level role in a new organisation.

But why do companies need to conduct these extensive background checks?

Why Conduct Director Checks?

There are several reasons why an organisation would need to conduct a business director check. This could be to:

  • Minimise any conflicts of interest. If a candidate’s current or past directorships could lead to an issue with any current serving director(s), it’s important to know this ahead of time.
  • Gain insight into and confirm a candidate’s skills and experience in managing a business, employees, finances and so on.
  • Discover whether said candidate has been responsible for, or involved in, an organisation that’s under administration, facing bankruptcy, insolvency or has been deregistered. 

Directorship checks should be conducted whenever you’re hiring any new managerial or executive-level employees, as well as appointing any new members of a board of directors that represent your organisation. 

These company director checks are also crucial when promoting existing staff members to managerial or executive-level positions.

Benefits of Director Checks

While directorship checks are important, they’re also highly beneficial for companies to conduct and can reveal useful information.

  • If you’re a creditor, you can assess creditworthiness based on any past or current success, judging by how a director handles business.
  • You can protect your business from individuals that have demonstrated a lucrative history of debt, or made poor, unwise business decisions that led to incidents.
  • If you want to get into business with a specific director, you can confirm a director’s particular credentials and use background information that you uncover to your advantage.
  • Checking solvency information helps unveil a deeper history of an applicant’s failed businesses (if they have any).
  • These checks help you understand how a director has acted in the past, helping you determine whether they’ll be a good fit for your company.

Ultimately, these checks are designed to give you total peace of mind and assurance that you’re making a wise hiring decision.

Bear in mind that because company director information is publicly available, directors have the facility to check their directorship reports to see what has been disclosed about them.

You can search the register of disqualified directors to find out whether someone has been forbidden from being a company director, either temporarily or permanently. 

On this register, you can find the date they were disqualified (and end date, if applicable), the reason for their disqualification and their last registered address. 

Any undischarged bankrupts, or anyone serving debt relief orders, cannot be company directors. You can conduct bankruptcy and insolvency background checks with Eurocom CI to determine whether companies or individuals are permitted to continue as a director due to these reasons.

Background Check Solutions from Eurocom CI

When you obtain information about business directors, this sheds light on their background, history and overall worthiness to your organisation. By conducting these checks, you’re giving yourself a competitive advantage to make smarter decisions about who you go into business with.

Through official sources, Eurocom CI can detect current or previously held directorships on individuals who may pose a conflict of interest. Complete reports will be issued directly to you quickly and efficiently, and we’ll ensure you’re fully aware of everything until the search is complete.

Get in touch with Eurocom CI today if you’re ready to discuss bespoke pre-employment background screening solutions.