non-executive director
Definition
Non-working director of a firm who is not an executive director and, therefore, does not participate in the day-to-day management of the firm. He or she is usually involved in planning and policy making, and is sometimes included to lend prestige to the firm due to his or her standing in the community. Non-executive directors are expected to monitor and challenge the performance of the executive directors and the management, and to take a determined stand in the interests of the firm and its stakeholders. They are generally held equally liable as the executive directors under certain statutory requirements such as tax laws. Also called external director, independent director, or outside director.
non-executive director is in the Corporate, Commercial, & General Law and Entrepreneurship, Management, & Leadership subjects.
non-executive director appears in the definitions of the following terms: independent director, external director, nominee director, Cadbury rules, executive director, remuneration of directors, board of directors, director at large, outside director and Bank of England
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