Role of Neds

Table of Contents
Chapter 1: Introduction 2
Development and History of Corporate Governance:- 2
Key aspects of the corporate governance:- 4
The research aims and objectives: 4
Research Methodology:- 5
Chapter 2 Literature Review:- 6
Overview of Non-Executive directors:- 6
Roles of Non-Executive directors:- 9
Summary of duty of directors as agents:- 10
The “Agency Problem”:- 10
The Higgs Report:- 11
The role of Non-Executive Directors:- 11
Common duties for both sets of directors:- 12
Function and role of Non-Executive directors: 12
Non-executive Directors and key board committees:- 14
The Audit Committee and Non-Executive Directors:- 14
Remuneration Committee and Non-Executive directors:- 16
Nomination Committee and Non-Executive directors:- 16
Importance and benefits of having Non-Executive Directors:- 17
Chapter 3 Analysis: 19
Performance Review of Non-executive Directors based on practical examples:- 19
Chapter 4 Conclusion 21
To investigate the corporate governance theory relevant to roles of non-executive directors: 21
To investigate the expected benefit and cost which should come from the appointment of non-executive directors on a company board theoretically: 21
To investigate the past literature to find out the actual benefit achieved by companies due to the inclusion of non-executive directors: 22
Reference and Bibliography:- 23

Chapter 1: Introduction
Development and History of Corporate Governance:-
Before moving towards the history of corporate governance, it is important to first briefly define what the corporate governance is. According to Mallin (2007) Corporate Governance is the basic set of rules and regulations, which includes techniques by which those individuals who provide financial (shareholders) tend to make sure that a return will be received on the investment made.
Thompson (2009) on the other hand, believes that corporate governance is the set of guiding principles by which a...