CIMA BA4 · Chapter 6 · Question 2 of 10
Which of the following is a key role of non-executive directors?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To scrutinise and constructively challenge the performance of management
Explanation
Non-executive directors contribute an independent view, constructively challenge strategy and scrutinise management performance, as well as overseeing risk, remuneration and appointments. Day-to-day operations and management accounts are executive responsibilities, and external audit must be independent of the board.
More The board of directors and board committees MCQs
- Q4Which of the following would most likely cause a non-executive director to be regarded as NOT independent?
- Q5What is the main purpose of a remuneration committee composed of independent non-executive directors?
- Q6Which of the following is a primary responsibility of the nomination committee?
- Q7Which of the following is generally regarded as good practice for the remuneration of non-executive directors?
- Q8Why are board evaluations recommended by corporate governance codes?