With the increasing ramification of economic changes and business complexity, each and every organizations should indulged in having proper level of corporate governance. It reflects systems of rules and process by which company is directed and controlled. It is evaluated that each and every directors must comply with all the legal and regulatory requirements of corporation act 2001. A person could be appointed in a company as non-executive director only when he has no pecuniary and other relation with company (Kang, Cheng & Gray, 2007).
It is considered that if a person has no pecuniary relation or have not been appointed at any of the position in the company. However, as per the corporate governance rules, majority of the directors in listed company either on domestic or international level should be non-executive directors. As per the Australian law, non-executive directors are the custodian of government process which are implemented with a view to increase the overall efficiency of the business. He will be appointed as Non-executive director by filling DIR form with the register of company and will be liable for all the legal and statutory compliance of the company. Now in the end, it could be inferred that Non-Executive director works in the best interest of the general public and check all the legal compliance and statuary matter (Tricker and Tricker, 2015.).
He is the custodian of the stakeholders who put surveillance on the company that whether it is complying with all the legal and ethical matters at large. However, appointment of Non- Executive director in Australia will be done by following all the proper laws and regulations of Corporation act.
References
Kang, H., Cheng, M., & Gray, S. J. (2007). Corporate governance and board composition: Diversity and independence of Australian boards. Corporate Governance: An International Review, 15(2), 194-207.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press, USA.
