Business Board of Directors

1466 Words Feb 2nd, 2018 6 Pages
A non-executive director normally doesn’t participate in the day-to-day management of the business, but offer general guidance and a different perception on current problems of the business. The board often seek their contribution on particular issues like policy making and planning exercises as they are independent and will provide an impartial view. They are appointed on their wide experience, specialist knowledge and personal qualities, so that they can carry out four principal roles:
1. Strategy
2. Performance
3. Risk
4. People (Remuneration)
Non-executive directors (NEDS) have a duty to advise, criticise and help the development of strategy. As outsiders to the company the NEDS have a more impartial view of external factors disturbing the business’s performance than the executives on the board. This will allow them to provide an educated contribution to strategy and act as a constructive critic in observing the aims and strategies created by the management team.
Another key role for NEDS is that they should examine the performance of management in meeting targets that have been agreed before, checking the progress made towards achieving the objective. It is up to NEDS to inquire repeatedly and ask questions of management, particularly where they have worries on the performance of the company. They are also responsible for determining the proper…
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