There is actually no legal distinction between Executive Directors and Non-Executive Directors, the difference lies in the tasks they do. A Director is involved in the day–to-day running of a business. The Non-Executive Director works with the executive team, normally on a part-time basis, on strategic and other business issues. Their role may vary, depending on what is required at each stage of a company’s development. They DO NOT get involved in the day-to-day running of the company.
In a start-up or fledgling business, a Non-Executive Director might act as a mentor and bring experience and gravitas to the business. They will act as a “sounding board” and give clear and independent advice. In publicly-quoted companies, a Non-Executive Director may just attend board meetings a few times a year.
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