- September 27, 2019 at 5:14 pm #547506chinny98Member
- Topics: 30
- Replies: 16
Good afternoon sir,
I would like to ask independent director is it must be an non-executive director?
Is that possible to have independent executive director? OR since executive director already means there is not independent because they manage the operation of the company so it is impossible to be have an independent point of view.
What is the difference between independent director and non-executive director?
TqSeptember 27, 2019 at 5:32 pm #547508Ken GarrettKeymaster
- Topics: 10
- Replies: 10352
As you suggest an independent director must be a NED – otherwise not independent.
Non-executive directors do not take part in the day-to-day operations of the company. In addition, to be an independent director, the NED must comply with a number of conditions
when claiming independence. These include:
> their business, financial and other commitments,
> other shareholdings and directorships and involvement in businesses connected to the company.
Holding shares in the company
does not necessarily compromise independence.
Essentially, they must have no recent connection with the company so that they are truly independent.
- You must be logged in to reply to this topic.