The Role of a Non-Executive Director

The need for a non-listed business (i.e. not compelled to do so by the Combined Code) to recruit a Non Executive Director is very dependent on the stage and size of the business. Thus the role may require all or a combination of the following:

• To provide expertise to a business it otherwise may not be able to afford;
• Assess management in relation to goals/strategy;
• Ensure the financial information is accurate and robust controls are in place;
• Provide a mechanism to ensure shareholder funds are used efficiently;
• Help set strategy and focus management on delivering it;
• Add credibility to a management team;
• Act as a sounding board to the MD;
• Act as a conduit between management and the investors;
• Fill a skills gap on the board;
• Provide constructive challenge and objective insight.

Therefore the core skills required for a Non-Executive Director are as follows:

• Sound judgement and objectivity; An ability to influence through clear communication;
• Strong interpersonal skills and an ability to manage conflict;
• Integrity and independence of thought;
• Commercial awareness and insight.