Executive director and non-executive director

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Question

In their 2022 Governance Report, the board of Mr Price made the following comment; "The board comprises of an independent chairman, lead independent director (LID), chief executive officer (CEO), chief financial officer (CFO) and non-executive directors. During the reporting period, the 11 directors comprised of two executive directors, six independent nonexecutive directors and three non-executive directors."

1. Explain the difference between an executive director and a non-executive director.

2. What is the significance of having an 'independent chairman; and a 'lead independent director' ?

3. Both King IV and the JSE listing requirements gives guidance on the composition of the Board. Write a short essay on the requirements/recommendations that these two documents provide with regards to the composition of the board.

Reference no: EM133424479

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