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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Balance of executive and NED
Hi can you please clarify something.
I came across the same question (or similar) in practice questions, with 2 contradicting answers.
Board should have a balance of executive and NED is not a principle of OECD
Then another question states:
There should be a balance of executive and NED as part of Corporate Governance.
Please explain the difference.
Many thanks
OECD guidance says nothing about NEDs. It does want effective leadership and in the to achieve that the UK code uses NEDs. Some other countries adopt other solutions. For example, Germany has a two-board system, one of which is a supervisory board.
Thank you for the explanation.