Non-executive director

Non-executive director,

Definition of Non-executive director:

  1. Non-working director of a firm who is not an executive director and, therefore, does not participate in the day-to-day management of the firm. 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, outside director, or director at large.

  2. In addition, non-executive directors' responsibilities include the monitoring of the executive directors and acting in the interest of the company stakeholders.

  3. A non-executive director is a member of a company's board of directors who is not part of the executive team. A non-executive director typically does not engage in the day-to-day management of the organization but is involved in policymaking and planning exercises.

How to use Non-executive director in a sentence?

  1. A non-executive director typically does not engage in the day-to-day management of the organization but is involved in policymaking and planning exercises.
  2. A non-executive director is a member of a company's board of directors who is not part of the executive team.
  3. A non-executive director's responsibilities include the monitoring of the executive directors and acting in the interest of the company stakeholders.

Meaning of Non-executive director & Non-executive director Definition