Across the Board: Non-executive directors, Part 2

The same legislative duties apply to both executive and non-executive directors. It is clear, however, that the commercial reality of the non-executive role means that the type of duty imposed on a non-executive director must be somewhat different to the duties imposed on an executive director.

In this Part 2 of our "Across the Board" series focusing on non-executive Directors, we consider the impact of ASIC v Rich on directors' duties as they apply to non-executive directors.

In the final report of the Banking and Financial Services Royal Commission¹, Commissioner Hayne noted three chief benefits of including non-executive directors on ASIC's board, being:

• enhancing the internal oversight function of the board of directors;