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Why is it important to have the non - executive director as part of the directors

Why is it important to have the non - executive director as part of the directors

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Answer #1

Following is importance of Having non-executive directors as a part of directors:

1) They Have Following Qualities:

  • Independence;
  • Impartiality;
  • Experience;
  • Specialist knowledge and
  • Personal qualities.

2) Non-executive Directors helps to give unbiased suggestions in Strategic Decision making.

3) They Helps to settle internal disputes i.e. dispute between company and executive directors.

4) They connect business operation with outsiders i.e. investors, bankers and other interested parties.

5) They provide specialist expertise which is essential for viability.

6) They Helps to monitor the performance of Executive directors.

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