Roles and Qualifications of Non-Executive Directors in Australia

Running head: NON-EXECUTIVE DIRECTOR 1
NON-EXECUTIVE DIRECTOR
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Student ID
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NON-EXECUTIVE DIRECTOR
What is a non-executive director, and what are the roles of non-executive directors
when appointed to a company board? In your presentation you are to address the
following issues:
1. What is the definition of a non-executive director in Australia?
According to Zattoni and Cuomo (2010) a non-executive director is part of the
company’s board of directors although he is not a member of the executive team and does
not take part in their roles. Non-executive directors take part in the organizational
planning and policy-making exercises and is not involved in the daily management of the
organizational activities. Additionally, the responsibilities of a non-executive director
include acting to ensure the success of the company and monitoring the performance of
the executive directors.
2. What are the qualifications of non-executive directors, or is there no qualification
required?
There is no specific certification or qualification required for a person to assume
the role of a non-executive director. Basically, becoming a successful non-executive
director is more about personal qualities and experience, and is not high based on
educational background or theory. The choice of a non-executive director is based on
evidence on a match between the potential candidate and the needs of the organization.
Therefore, although various potential candidates possess their unique weaknesses and
strengths, and have the potential of a great performance in different contexts, a non-
executive director needs to be a ‘perfect fit’ for the organization (Hahn & Lasfer, 2011).