English

Explain the following Term/Concept: Non-Executive Director.

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Question

Explain the following Term/Concept:

Non-Executive Director.

Short/Brief Note
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Solution

(1) A non-executive director is a member of the company’s Board of Directors who is not part of the executive team. He holds no executive managerial position. A non-executive director does not engage in the day-to-day management of the organization but he involved in policymaking and planning exercises.

(2) A non-executive director is a full-time member of the company’s Board of Directors and responsible as part of the board for the success of the company. The idea behind his appointment is to get new independent ideas, perspectives, second opinion, and alternate voice to the Board.

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Key Managerial Personnel (KMP)
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Chapter 6: Directors and Key Managerial personnel of a company - EXERCISES [Page 100]

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Balbharati Secretarial Practice [English] Standard 11 Maharashtra State Board
Chapter 6 Directors and Key Managerial personnel of a company
EXERCISES | Q 2. 5) | Page 100

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