When do we conduct reverse directorship?

Unknown to many companies, Reverse Directorship is among the most important checks that must be conducted prior to finalizing a hiring decision. This check is highly imperative, especially when recruiting for a high-level position. When hiring a new director or other senior-level positions, we need to know that the candidates can indeed help the business in the long run. That means an in-depth check on their employment history is a pre-requisite.

Reverse directorship is a check that aims to determine the candidate’s previous and/or current positions in other companies as well as verify any shareholding. The main purpose of this check is to provide details of interest and history of any executive positions that they have held or continue to hold along with any significant shareholding positions or disqualifications. A disqualification might suggest that a candidate is either unsuitable to hold a directorship role or is outright barred from doing so.

This check is not necessarily relevant only when recruiting for senior, managerial, and directorship roles. Any candidate at any level can be checked if they have ever held any self-employed positions, which means that the potential for conflict of interest is a lot more common than many might initially anticipate.