THE demise of energy giant Enron has put the role of directors into sharp focus, according to a Bermuda business leader.

Geoffrey Moore, chairman of the Institute of Directors, said it was more important for those taking on directorships to understand their responsibilites than their rewards.

"When people become directors, the first thing they want to know is what the directors' fees are," said Mr. Moore. "What they should be asking is, 'What are my liabilities and responsibilities?'

"I can't stress enough the great importance of corporate governance. It seems to me that in the Enron case, there was no corporate governance. In all the reports I have seen, I have seen no mention of an audit committee.

"The audit committee should be appointed by the directors to liaise between the financial side of the company and external auditors and in the Enron case they should have played a pivotal role."

He added that the IoD supplied Bermuda's business community with a check list of responsibilities of directors and officers of companies for reference.

When Enron filed for bankruptcy last December, it was the biggest corporate failure in American history.

The scandal deepened this week when the auditor in charge of the Enron account, former Arthur Andersen partner David B. Duncan, pleaded guilty in a Houston court to directing the shredding of Enron documents.

Mr. Moore was one of the founder members of the Bermuda IoD, which celebrates its tenth anniversary this year. Bermuda's new Governor Sir John Vereker will help celebrate the anniversary by making one of his first public speeches since being appointed to the island at an IoD dinner next month.

The 120 members of the Institute will be invited to the event at Fairmont Southampton Princess Hotel on May 11, when Sir John and his wife Judy will be guests of honour.

Mr. Moore said: "We are privileged to have Sir John and Lady Vereker attend. We are delighted to welcome them to the Institute of Directors' tenth anniversary celebrations as well as to Bermuda.

"We also want to take this opportunity to welcome newcomers to the event, as apart from giving them an opportunity to hear Sir John speak, it presents them with a very good opportunity to find out about the Institute in an informal and pleasant atmosphere."

Sir John, who has been permanent secretary of the Department for International Development since 1994 also had a spell working in the policy unit of the office of then-Prime Minister Margaret Thatcher, where he worked on issues including the domestic labour market and the early stages of privatisation policy.

The Institute has a commitment to the education of young Bermudians destined to become business leaders of the future.

The IoD is co-sponsor of the Young Enterprise Initiative open to students aged 14 to 17 to encourage them to learn about running a business.

And the Institute also supports the WG (Buddy) Franklin Scholarship, awarded annually to first-year students studying either an Associates in Arts Business Administration or an Associates in Business degree at Bermuda College.