Non Executive found negligent

Non-Executive Directors can also be held liable. This was clearly highlighted in a case where a full-time director defrauded the company and non-executives were found to be negligent. The negligence was due to insufficient attention being paid to the operation of the firm. The claim was settled for an undisclosed sum & was paid out of the non-executives personal assets. This clearly illustrates that non-executive directors in the UK are principally involved to ensure that there is a second pair of eyes on the company's executive management. Non-executives are often exposed to liability just as much as their executive counterparts, which is not something they always recognise.