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Director

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Is the concept of Non-Executive director exist today??

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Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 31 December 2008

Yes the concept do exist.

Pls follow the text below for a deep understanding :

Non-working director of a company who is not an executive director and, therefore, does not participate in the day-to-day management of the company. He or she is usually involved in planning and policy making, and is sometimes included to lend prestige to the firm due to his or her standing in the community. Non-executive directors are expected to monitor and challenge the performance of the executive directors and the management, and to take a determined stand in the interests of the firm and its stakeholders. They are generally held equally liable as the executive directors under certain statutory requirements such as tax laws. Also called external director, independent director, or outside director.