Company law has little to say about the composition of the boards of public companies beyond the requirement that they should have at least two directors. Not surprisingly, boards vary widely in form: some even quite large companies have the minimum number of directors, whereas others have twenty or more; the whole board, including the chairman, may be committed full time to the company, or there may be a majority of part-time directors who advise principally on the overall direction of the business. Moreover, the role of these non-executive directors can vary widely; in some companies they are given special responsibility for overseeing particular aspects of the company's operations, for example the financial function and liaison with the external auditors.
Published on
01 December 1979
Composition of company boards