Liabilities of Non-Executive Directors

Company Law
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Table of Contents
Liabilities of Non-Executive Directors........................................................................................................3
Personal Responsibilities of Non-Executive Directors................................................................................3
Best deal with the practical difficulties that Diana might face within the board and the audit committee...4
References...................................................................................................................................................6
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Liabilities of Non-Executive Directors
As a non-executive director, Diana is supposed to show a level of fiduciary duty and also require
caring Boundless Technologies Ltd exactly as executive directors do. She also requires analyzing
the performance of the management and making sure that constructively challenge the same
when it comes to the board meeting. Being a non-executive director she is independent of the
general management of the company and all associated parties. Diana has the same access to the
sensitive information of the company as all other directors have. In this case, she requires being
more careful and should maintain confidential information. As directors are responsible for the
primary management of the company, she is also responsible for her personal action towards the
business1. Like other directors, Diana will be held responsible for any loss occurs Boundless
Technologies Ltd due to breaches of her assigned duties. Additionally, she might require
illustrating that she has followed the appropriate steps and all required precautions to exercise
care, skill, and diligence regarding the execution of her roles and responsibilities.
Personal Responsibilities of Non-Executive Directors
The personal liability of a Diana might be brought up in both civil and criminal regarding her
omission or acts in the manner she has been directing the company. Diana has to follow all the
obligation of the company which has been signed by her under the job agreement. Any breach to
this agreement can be fined to Dian according to a summary conviction and also can be sent to
the prison for as long 6 months. She also needs to be careful were transactions are associated or
business contract concerning because she might be held negligent or may be personally liable for
1 Alan. Lowry Dignam, Company Law (Oxford Univ Press, 3rd ed, 2018).
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