Question

What are some of independent non-executive director roles and how can he/she bring about good governance?

Answer 1

Independent non-executive director refers to the members who are not a part of the team of executives. Their roles are as follows:
1. They do not interfere in the day to day activities of the company. Instead, they have some important roles in planning and decision making

2. They also have the responsibility to have control over the executive directors and to monitor them.

3. They help to provide a challenging position and environment to the executives of the company and make them more efficient.

4. They have the same passion and commitment towards the organization and its success as like other active executive members.

Non-executive directors are considered independent directors of an organization. They can give quite a wide view of the activities of an organization as they are independent of the executive team. Corporate governance is a major topic that everyone within and outside the company looks for, this is a set of policies, strategy, structure, and culture of an organization. As the non-executive directors are not involved in the day to day activities and are given importance to core actions of involving in policymaking, planning, monitoring executive directors, protecting stakeholders' interest, and focusing on public relations which are a major part of corporate governance. So by involving these activities and overviewing the entire organizational activities and by giving the remedies in case of any wrong detections can bring good corporate governance by non-executive directors.