In Malaysia, there are two types of directors: executive directors and non-executive directors. The differences between these two types of directors lie in their respective roles and functions.
Executive directors are appointed to manage and run the operations of a company on a daily basis. While they sit on the company’s board of directors, they are also full-time employees of the company 1. They are responsible for the day-to-day management of the company, including making decisions on the company’s strategy, operations, and finances. They are also responsible for implementing the policies and strategies set by the board of directors.
On the other hand, non-executive directors do not work for the company in a full-time capacity. They do not participate in managing the company, but rather provide an independent perspective on the company’s operations and performance 2. They are responsible for monitoring the performance of the executive directors and ensuring that the company is being run in the best interests of its shareholders.
It is important to note that although there is no legal distinction between the powers and duties of executive directors and non-executive directors, the two play different roles on a board of directors 4
To gain additional information or seek any help, contact us at Zentrusted.
This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.