Finance & Accounting

Essential Criteria To The Appointment For Non-Executive Director To Board

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What is Essential Criteria to the Appointment for a Non-Executive Director to the Board

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Assignment Solution


A non-executive director is not employed by the company but legally compliant with the requirements of the Corporations Act 2001 and shows intermittent performance in the Board (AICD 2016). 

Essential Criteria for a Non-Executive Director

The selection criteria for non-executive directors check whether their skills and expertise are aligned with the company's Board (Whitehead 2013). 

Knowledge and Experience

The person should have working experience in executive-level positions in similar organisations and have an understanding of the various responsibilities – legal, ethical and financial (AICD 2011). A good comprehension of financial reporting and awareness about laws is essential. 


The person should be constructive in strategic reviews and be an active contributor during decision making (Cortese 2009). He/She should be capable of managing organisational risks. The person is to be a change manager employing recent management thinking in managing people and the company (AICD 2011).

Personal Integrity

The person has to fulfil the assigned roles and responsibilities, behave ethically and independently and give priority to the company’s interests than personal interests (AICD 2011). 


The person has to act collaboratively, be bold, curious, robust and display perseverance during a discussion with other members and capable of synthesising complex details (Wheeler 2012).


The person should have strong interpersonal and communication skills, act empathetically, work in a group and be tactful (AICD 2011).

Business Acumen

The person should showcase good business instinct and genuine interest in the company  (AICD 2011). 


Thus, a non-executive director is to be intelligent, supportive, experienced, entrepreneurial and passionate.

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