In a modern business environment where regulations change rapidly and responsibilities increase, continuous education and training for board members is a necessity, not a luxury. In Georgia, the "Duty of Care" established by the new "Law on Entrepreneurs" has increased the personal liability of board members. They are required to make informed decisions, which is impossible without knowledge of the latest legislative changes, financial reporting standards, and corporate governance best practices. The Board Training service on Legal.ge aims to enhance director competence so they can effectively manage risks and strategic directions. This is particularly important for independent directors who need to quickly grasp the company's specifics, and for family business representatives transitioning to professional governance.
What Does Board Training & Education Service Cover?
Experts on Legal.ge offer individual and group learning programs tailored to your board's needs:
- Induction Programs: Rapid integration of new directors — introducing the company's strategy, financial status, charter, and internal regulations.
- Legal and Regulatory Updates: Training on the latest amendments to the "Law on Entrepreneurs," Labor Code, Tax Code, and National Bank regulations.
- Financial Literacy for Directors: Reading and interpreting financial statements (IFRS) for non-financial directors to enable effective management oversight.
- ESG (Environmental, Social, and Governance): Integrating sustainable development goals into business strategy, which is increasingly demanded by investors.
- Risk Management and Cybersecurity: Understanding modern challenges and the board's role in overseeing cyber risks.
Real-World Scenarios When You Need This Service
Training needs arise in the following cases:
- Formation of a New Board: When a company establishes its first professional board, members should undergo unified training on teamwork and role distribution.
- Preparing for IPO or Investment: Before a public offering or foreign investment, board members must know international standards and accountability rules.
- Legislative Changes: During major reforms (e.g., changes to the "Law on Entrepreneurs"), informing directors about their new obligations is essential to avoid penalties.
- Strategic Session: Part of the annual strategic meeting (Strategic Offsite) is often dedicated to an educational component to keep the board "on the same page" with global trends.
Georgian Legal Framework and Regulations
Although the law does not directly mandate director training for private companies (except for commercial banks, where the National Bank requires fit and proper criteria), the Law of Georgia on Entrepreneurs establishes the standard of a "conscientious and prudent manager." In judicial practice, if a director makes a wrong decision due to lack of knowledge, it does not exempt them from liability. Conversely, caring for qualification improvement can be considered part of the duty of care and protect the director from personal liability (under the Business Judgment Rule).
Service Process
The training service on Legal.ge includes:
- Needs Assessment: Evaluating board members' competencies and identifying the "Knowledge Gap."
- Program Development: Creating a syllabus tailored to the specific industry and company.
- Training Delivery: Interactive sessions, case studies, and simulations (physical or online).
- Material Handout: Providing presentations, manuals, and checklists for future use.
- Certification: Issuing a certificate of training completion (optional).
Why Choose Legal.ge?
Legal.ge unites practicing lawyers and corporate governance experts with real business experience. Our trainings are not dry theory; they are practical knowledge helping directors make better decisions and protect the company from risks. Investing in board education is investing in the company's secure future.
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