1.Sir in a non-profit organisation if i consider founder is the principal and trustee is the agent and management board is the sub agent is that fine?
2. will both the trustee and agent be financially rewarded in a non profit organisation?
3.In a non profit organisation do they have any Non executive director?
4. In a commercial organisation do Non executive directors get remuneration?
Ask the Tutor ACCA SBL
principal-agent relationship and non executive
4y ago#11 Usually it would be trustees= principals; management = agents. If the fonder is still involved he/she would be a trustee.
2 Usually trustees are ot rewarded in NFP organisations. Management and employees are rewarded.
3 No. In effect all the trustees are non-executive because they don't have day-to-day involvement in running the organisation.
4 They get fixed fees ie not dependent on the company's performance or profits.
1. so sir it would be wrong to consider the founder as principal in a non profit org?
2.So the management board will only consist of Executive directors in a non profit org?
3.In a public or government sector organisation who will be the NEDs and Executive directors?
4y ago#3I think you are spending too much effort on this.
1 Only if on the board of trustees. Otherwise the founder has bought further relationship.
2 Probably, but there could perhaps be exceptions,
3 Neds can be usual neds, but Government might insist on a roll. Executive directors should be recruited from the best available.
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