PREMIUM: Defining an effective non-executive board member  

19 Mar, 2023 - 00:03 0 Views
PREMIUM: Defining an effective non-executive board member  

The Sunday Mail


Memory Nguwi   

AT some stage, most organisations will need to appoint non-executive directors to sit on their boards. Apparently, some organisations do it to make up the numbers for compliance with regulatory requirements or to create a perception of good corporate governance.

A non-executive board member is a board member who does not hold an executive position within a company. They provide independent oversight and guidance to the company’s management team.

They are typically appointed based on expertise in a particular area, for example, finance, law, human resources or marketing. They are expected to bring diverse perspectives and experiences to the boardroom.

This has sometimes been interpreted to mean they do not represent any particular shareholder’s interests.

However, in practice, this assertion is rarely possible, as shareholders and other influential members of an organisation tend to recommend the appoint...

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