Non-executive directors and the listed company board—corporate governance roles and responsibilities


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Corporate expert
Practice notes

Non-executive directors and the listed company board—corporate governance roles and responsibilities


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Corporate expert

Practice notes
imgtext

STOP PRESS: A new version of the UK Corporate governance Code (UKCG Code) was issued on 22 January 2024 (2024 UKCG Code) and makes limited changes to the current version of the UKCG Code, which was issued in 2018 (2018 UKCG Code). The 2024 UKCG Code will apply to companies with accounting periods beginning on or after 1 January 2025 (with the exception of Provision 29 relating to the requirement for a board declaration in relation to internal controls, which will apply to accounting periods beginning on or after 1 January 2026). For further information, see News Analysis: UK Corporate Governance Code 2024 published—what’s changed?..

The non-executive director (NED) is not a statutory creation and is, essentially, a creature of corporate governance. There is no legal distinction in the Companies Act 2006 (CA 2006) between executive and non-executive Directors. NEDs have the same duties, responsibilities and potential Liabilities under law as executive directors.

For information on these legal duties and liabilities, and the standards to which all directors are equally

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Directors definition
What does Directors mean?

A director of a company is responsible for the day-to-day management of that company. The directors make decisions on behalf of the company in order that it can carry on its business.

Read more

Popular documents

Matters reserved for the board

Matters reserved for the boardThe UK Corporate Governance Code (UKCG Code) of the Financial Reporting Council (FRC) sets out standards of good practice in relation to leadership and effectiveness of the board of directors, remuneration, accountability and relations with shareholders. It applies to

The corporate governance statement

The corporate governance statementThe UK Corporate governance Code (UKCG Code) sets out standards of good practice in relation to leadership and effectiveness of the board of directors, remuneration, accountability, transparency and relations with shareholders.In July 2018 the Financial Reporting

Non-executive directors—independence

Non-executive directors—independenceThe concept of independence is key to provisions in the UK Corporate Governance Code (UKCG Code) on board effectiveness, including on board and board committee composition. Non-executive directors (NEDs) of listed companies and, in particular, independent NEDs,

Diversity in the boardroom

Diversity in the boardroomSince the report on the recommendations of the government-backed review by Lord Davies of Abersoch of gender diversity on listed company boards was released in February 2011, the topic of female board representation has rarely left the headlines. The purpose of the review