Non-executive directors (NEDs) play an important role in the governance and oversight of a Singapore company. While they do not have day-to-day management responsibilities, NEDs contribute valuable insights, expertise, and independent oversight to the board of directors. Here are the typical roles and duties of a non-executive director in a Singapore company:

  1. Strategic Guidance and Oversight: NEDs provide strategic guidance and oversight to the company’s management team and board of directors. They participate in discussions and decision-making processes related to the company’s long-term strategy, goals, and direction.
  2. Governance and Compliance: NEDs ensure that the company operates in compliance with applicable laws, regulations, and corporate governance standards. They review and monitor the effectiveness of the company’s internal controls, risk management practices, and corporate governance policies.
  3. Independent Oversight: NEDs bring an independent perspective to board deliberations and decision-making. They act in the best interests of shareholders and stakeholders, free from conflicts of interest that may arise for executive directors.
  4. Monitoring Performance: NEDs monitor the performance of the company, its management team, and its board of directors. They review financial performance, operational metrics, key performance indicators (KPIs), and other relevant benchmarks to assess the company’s overall health and performance.
  5. Appointment and Evaluation: NEDs participate in the appointment, evaluation, and succession planning processes for executive directors and senior management. They contribute to the selection of qualified candidates for leadership positions and provide feedback on their performance.
  6. Risk Management: NEDs assess and monitor risks facing the company, including strategic, operational, financial, legal, and reputational risks. They work with management to develop risk mitigation strategies and ensure that appropriate risk management processes are in place.
  7. Stakeholder Engagement: NEDs engage with shareholders, investors, regulators, and other stakeholders to communicate the company’s strategy, performance, and governance practices. They represent the interests of shareholders and serve as a bridge between the company and its stakeholders.
  8. Board Committees: NEDs may serve on various board committees, such as audit committees, remuneration committees, and nomination committees. They provide oversight and guidance on specific areas of responsibility assigned to these committees.
  9. Continuing Education: NEDs engage in ongoing education and professional development to stay informed about industry trends, regulatory developments, and best practices in corporate governance. They participate in training programs, seminars, and conferences to enhance their skills and knowledge.

Overall, non-executive directors play a crucial role in ensuring effective governance, strategic oversight, and accountability within a Singapore company. By fulfilling their roles and duties diligently, NEDs contribute to the long-term success and sustainability of the company.

If you need advice on the makeup of your company’s board of directors, you can email the Raffles Corporate Services corporate compliance team at [email protected].

 

Yours sincerely,

The editorial team at Raffles Corporate Services