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Duty of Non executive director

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Duty of Non executive director

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by aadil1234.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • March 8, 2021 at 6:43 am #613894
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    Sir is it the duty of Non executive director to promote positive image of the company or perform his job in a way that promotes positive image of the company.

    Or the duty is just limited to protecting the interest of shareholders in the company or board?

    March 8, 2021 at 8:07 am #613902
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10597
    • ☆☆☆☆☆

    Promoting a positive image is arguably an executive function and is not an explicit duty of NEDs.

    However, during board meetings NEDs should warn executive directors about courses of action that could harm the standing of the company and hence harm shareholders. Also, the presence of respected NEDs can enhance a company’s reputation.

    March 8, 2021 at 8:23 am #613912
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    Thank you sir 🙂

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    Posts
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  • The topic ‘Duty of Non executive director’ is closed to new replies.

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