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A non-independent director is in a majority of cases an executive associated with the boards organization, i.e. chairman, CEO, COO, CFO, etc. and/or any other executive voted to be a member of the board; or it can and usually is someone or an entity, (pension fund, family member, institutional investors, etc) from outside the organization that holds some form of financial interest that influences the board to offer a seat on the board for representation. Simply put - it is opposite of what the SEC, NYSE and NASDAQ requirements set forth for independent directors.
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoRead your governing documents to determine the qualifications necessary for board membership.
Usually, board members are:
- Elected by members of the association -- unit owners
- Designated to serve particular functions of the association's business
- Required to be owners, and best practices indicate, resident owners
If a candidate for board membership runs for election, or is appointed to the board, and does not meet the qualifications listed in the governing documents, it could be that the candidate is 'non-independent'.
Standout examples of non-independent candidates could be:
- The developer's lawyer
- Two owners of the same unit -- if the governing documents restrict the number of votes to one per 'door'
- The community's builder
- Anyone with a conflict of interest, or potential conflict of interest with the business of the association.
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Since a Board of Directors always has multiple members is it ever okay to use Board of Director for example should it be Board of Director position or Board of Directors position?
Of the two options offered, 'Board of Directors position' is to be preferred. For clarity, however, you might consider using just 'Director position.' Other alternatives: position on the Board of Directors; Board position; Director on the Board. Note: One director does not make a board.
If someone serves on the board of directors of an organization do you refer to the person's position as a board of director?
No, simply director. The board refers to the entire group of directors collectively.
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In Indonesia, instead of a Board of Directors, they have a Board of Commissioners, where the CHairman id called the President COmmissioner. To clarify, the Indonesian Board of Directors consitiutes the Senior Management Committee, with CEO/Managing-Director called the President Director.
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Can the executive Director of a non-profit organization be the chariman of the baord of directors?
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