Executive and Non-Executive Directors
Transcript:
Hello!
In Common Law countries, a company’s board of directors is typically made up of both executive and non-executive directors. While both types of directors have important roles to play in the company’s governance, there are some key differences between the two.
Executive Directors:
Are full-time employees of the company and are involved in the day-to-day operations of the business;
Have specific responsibilities for managing the company and are accountable to (e rispondono a) the board of directors;
Are paid a salary and may also receive performance-based incentives (incentivi basati sui risultati) such as bonuses or stock options for the work they do in the company;
May hold a significant number of shares in the company and have a vested interest (interesse acquisito) in its success;
Have a more intimate knowledge of the company’s operations and are therefore more involved in strategic decision-making.
Non-Executive Directors:
Are part-time and are not involved in the day-to-day operations of the business;
Do not hold an executive position within the company;
May be appointed (nominati) for their specific expertise or to provide independent oversight (supervisione indipendente) of the company’s operations;
Are not paid a salary, but are instead compensated with a fee for their services;
Are generally not shareholders in the company and therefore have less of a vested interest in its success;
Provide an external perspective to the board of directors and bring a wider range (più ampia gamma) of experience and expertise.
Thank you, and see you next time for more Peter’s Pills to improve your legal English.
Read more about the roles and responsibilities of Non-Executive directors in a Common Law country here: “Roles and Responsibilities of Non-Executive Directors of Boards of Companies“.
Legal English – Sommario delle Lezioni
Legal English – Peter’s Pills – Lesson 50 – Executive and Non-Executive Directors
Legal English – Peter’s Pills – Lesson 49 – Transfer of shares vs transmission of shares
Legal English – Peter’s Pills – Lesson 48 – They, them, their for singular nouns
Legal English – Peter’s Pills – Lesson 47 – Jointly and severally
Legal English – Peter’s Pills – Lesson 46 – Invoice words
Legal English – Peter’s Pills – Lesson 45 – Quotation
Legal English – Peter’s Pills – Lesson 44 – Gazumping and Gazundering
Legal English – Peter’s Pills – Lesson 43 – English words that the English do not understand
Legal English – Peter’s Pills – Lesson 42 – Easement vs Profit à prendre
Legal English – Peter’s Pills – Lesson 41 -er, -or and -ee names
Legal English – Peter’s Pills – Lesson 40 – The Objects Clause
Legal English – Peter’s Pills – Lesson 39 – When is Latin hot, and when is it not?
Legal English – Peter’s Pills – Lesson 38 – Default
Legal English – Peter’s Pills – Lesson 37 – Company Agent
Legal English – Peter’s Pills – Lesson 36 – Injunction (false freind)
Legal English – Peter’s Pills – Lesson 35 – Mortgage
Legal English – Peter’s Pills – Lesson 34 – Freehold, Leasehold and Commonhold estates
Legal English – Peter’s Pills – Lesson 33 – Transferor, Transferee and Transmittee
Legal English – Peter’s Pills – Lesson 32 – Tax evasion, tax mitigation and tax avoidance
Legal English – Peter’s Pills – Lesson 31 – Numbers
Legal English – Peter’s Pills – Lesson 30 – Ordinary resolutions vs special resolutions
Legal English – Peter’s Pills – Lesson 29 – AGM vs EGM
Legal English – Peter’s Pills – Lesson 28 – A going concern
Legal English – Peter’s Pills – Lesson 27 – Collocations: Violate, breach, break, disobey and infringe
Legal English – Peter’s Pills – Lesson 26 – Company meeting words
Legal English – Peter’s Pills – Lesson 25 – Mortgagor vs Mortgagee
Legal English – Peter’s Pills – Lesson 24 – Fixed charges vs Floating charges
Legal English – Peter’s Pills – Lesson 23 – Doctrine
Legal English – Peter’s Pills – Lesson 22 – Construe
Legal English – Peter’s Pills – Lesson 21 – Sign vs Execute
Legal English – Peter’s Pills – Lesson 20 – The closing statement
Legal English – Peter’s Pills – Lesson 19 – Writing Business Emails
Legal English – Peter’s Pills – Lesson 18 – Limited companies
Legal English – Peter’s Pills – Lesson 17 – Annual Accounts
Legal English – Peter’s Pills – Lesson 16 – Meetings
Legal English – Peter’s Pills – Lesson 15 – Attorney-at-law vs Attorney-in-fact
Legal English – Peter’s Pills – Lesson 14 – Here and there compounds
Legal English – Peter’s Pills – Lesson 13 – Subject Matter
Legal English – Peter’s Pills – Lesson 12 – The clear days rule
Legal English – Peter’s Pills – Lesson 11 – Shareholder, Member or Holder of shares?
Legal English: Peter’s Pills – Lesson 10 – Competition Law
Legal English: Peter’s Pills – Lesson 9 – Lasting Power of Attorney
Legal English: Peter’s Pills – Lesson 8 – Guardianship
Legal English: Peter’s Pills – Lesson 7 – Damage vs Damages
Legal English: Peter’s Pills – Lesson 6 – Legal Doublets
Legal English: Peter’s Pills – Lesson 5 – Escrow
Legal English: Peter’s Pills – Lesson 4 – Memorandum of Association vs Articles of Association
Legal English: Peter’s Pills – Lesson 3 – Sign legibly
Legal English: Peter’s Pills – Lesson 2 – Deed poll
Legal English: Peter’s Pills – Lesson 1 – Party, counterparty and counterpart
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