Answer to Question #303222 in Finance for Andrick Angel

Question

What is the reason of having more non executive directors than executive directors? 5marks

Answer 1

Their role is typically supervisory and they are not expected to be actively involved in the day-to-day management of the company. They need to be more than executive directors to ensure; objective, independent, impartial, wide experience, specialized knowledge and constructive view of the plans and decisions of the executive board.