Unethical Practices by Non-Executives
Non-executive director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. They are differentiated from inside directors, who are members of the board who also serve or previously served as executive managers of the company.
refers to a member of the board of directors who is neither an employee of the company nor is in any manner engaged in the day-to-day affairs of the company.
Independent Director means a director who is non-executive and is not connected with the company or its promoters or directors through any business relationship, but may be distantly related to the family owners.
Non-executive directors have responsibilities in the following areas: * Strategy: Non-executive directors should constructively challenge and contribute to the development of strategy. * Performance: Non-executive directors should scrutinise the performance of management in meeting agreed goals and objectives and monitoring, and where necessary removing, senior management and in succession planning. * Risk: Non-executive directors should satisfy themselves that financial information is accurate and that financial controls and systems of risk management are robust and defensible. * People: Non-executive directors are responsible for determining appropriate levels of remuneration of executive directors and have a prime role in appointing, and where necessary removing, senior management and in succession planning.
Role of Non-Executives
* Non executive director has a positive contribution to making and ensuring that the board fulfils its main objectives. He can exercise an impartial influence and bring to bear experience gained from other fields;
* To direct the company and to bring wider experience, technical expertise, independent judgement, new ideas, information related to international markets,
refers to a member of the board of directors who is neither an employee of the company nor is in any manner engaged in the day-to-day affairs of the company.
Independent Director means a director who is non-executive and is not connected with the company or its promoters or directors through any business relationship, but may be distantly related to the family owners.
Non-executive directors have responsibilities in the following areas: * Strategy: Non-executive directors should constructively challenge and contribute to the development of strategy. * Performance: Non-executive directors should scrutinise the performance of management in meeting agreed goals and objectives and monitoring, and where necessary removing, senior management and in succession planning. * Risk: Non-executive directors should satisfy themselves that financial information is accurate and that financial controls and systems of risk management are robust and defensible. * People: Non-executive directors are responsible for determining appropriate levels of remuneration of executive directors and have a prime role in appointing, and where necessary removing, senior management and in succession planning.
Role of Non-Executives
* Non executive director has a positive contribution to making and ensuring that the board fulfils its main objectives. He can exercise an impartial influence and bring to bear experience gained from other fields;
* To direct the company and to bring wider experience, technical expertise, independent judgement, new ideas, information related to international markets,
References: http://www.baginskycohen.com/Documents/H7.pdf http://en.wikipedia.org/wiki/Non-executive_director http://books.google.com.ph/books?id=PQGsIeWeE6AC&pg=PA238&dq=unethical+practices+by+nonexecutives&hl=tl&ei=AdlxTpuGAcueiAemtKWhBg&sa=X&oi=book_result&ct=result&resnum=10&ved=0CFwQ6AEwCQ#v=onepage&q&f=false http://www.buzzle.com/articles/ethical-and-unethical-business-practices.html