Request a Quote

Request a Quote

Please complete the form below, we’d love to hear from you!

Developing a federated model of General Practice - The roles & responsibilities of a Director

The key point to make is that Directors are appointed by the shareholders to act on their behalf in the day to day running of the company. They have a legal duty to use skill and due diligence to run the company and are accountable to shareholders for the decisions they make.

At BW Medical Accountants we have separate document, which details these responsibilities.  To request a copy, please email Rachael rachael.sellers@bw-medical.co.uk 

What this BLOG will focus upon therefore is that for GPs and Practice Managers coming forward to be Directors of the newly formed Federations, this is going to be a very different way of working. It is not a role to be taken lightly, nor one to take on without carefully considering whether or not you really are cut out to be a Director. The roles and responsibilities document will definitely help you weigh this up; however, for those who make the decision to become a Director it can become one of the most rewarding and fulfilling roles you will ever have.

It will of course mean developing and learning new behaviours and skills.  It will also require you to be ready to make decisions that have been delegated to the board without input from the shareholders, who will retain a small number of reserved matters they must be consulted upon. This is equally difficult for shareholders, who as General Practices are used to being consulted by their CCG when it comes to decision making. It takes a bit of getting used to that this will not be the case with the Federation and the Directors will be making all the decision with the exception of those reserved to shareholders.

This though isn't the biggest issue to overcome as a new Director. The issue I notice being hardest to overcome for most new Directors is that they are not there to represent "their practice", or a "locality" within the federation. When a Director attends a board meeting they are there to represent all shareholders, and their decisions must benefit all involved, without vested interest influencing them.

The role of a Director is therefore another area we spend time getting right in the development meetings. Federations need to appoint the right people, with the right skills, behaviours and outlooks. Getting it wrong could spell disaster, and will certainly hold back progress as ultimately it will mean a Director either resigning or being removed, and the process to fill the post will take time. The new Board then has to settle down again in to delivery, which will naturaly take time, and there is no shortcut to that.

The Shareholders Agreement and Articles of Association for the company will detail the decision making powers of the Board, and those matters reserved to the shareholders. It is a requirement of company law that these are not breached. This of course means part of the role of the entire board is to administer the governance of the company and remain within company law.  One of the newly appointed Directors will pick up this role within the board, and of course you can get support to execute the role.

In our next issue, we will look the corporate governance structures within a company, starting with the role of a shareholder.

For more information on how we can support you in forming a federation, or to arrange to speak to one of our experts please contact enquiry@bw-medical.co.uk or call 0191 653 1022.

Additionally, if you should have questions for us please email rachael.sellers@bw-medical.co.uk and we will do our best to answer these within the blog.

Scott Mckenzie

Scott Mckenzie

NHS Management Consultant

Next Event / Workshop

PULSE Live Leeds 2020

Pulse LIVE will be travelling to Leeds in 2020 and BW Medical Accountants will be there to meet you! PULSE are back wit...

  • BW Medical Accountants have a good working knowledge of General Practice and are keenly aware of the challenges Practices face within the changing environment of the NHS.  We have been very impressed by the way BW Medical continue to deliver the range of services they provide from Accounts to Tax and NHS Pension advice. 

    We have found Practice consultation and engagement from BW Medical specifically helpful to shape the future of the Practice.

    GP Partner
    GP Practice, Newcastle
  • We had no hesitation in moving to BW Medical Accountants.  For any business your accountant is integral, and for us one of the most important factors to this relationship is to have a personal and trusting approach, which BW have undoubtedly achieved. 

    The service we receive and the interest they show in our practice assures us that they have a genuine interest in us and commitment to us.  More importantly they are always helpful and polite to answer even the dumbest of questions!  They give us confidence and reassurance knowing that they are always very up-to-date with all the numerous changes within general practice and we would have no hesitation in recommending them to other practices seeking a professional and personal accountancy service.

    Jackie Rotherham, Practice Manager
    The James Street Family Practice, Lincolnshire
  • We changed to BW Medical Accountants and I would say we have just had the most transparent and understandable end of year meeting and the best planning advice I have ever had in 16 years of practice.

    GP Partner
    Cumbria

Newsletter Signup

Loading...