Day: May 13, 2025

Alex has just been appointed as a non-executive director of Big Staffie plc, a FTSE 350 company.

Keith, a business consultant told him that under the UK Corporate Governance Code, Alex would have the following responsibilities as a non-executive director:

Responsibility 1 – Satisfying himself about the integrity of the company’s financial information
Responsibility 2 – Reporting on the performance of the company
Responsibility 3 – Determining appropriate levels of remuneration for executive directors
Responsibility 4 – Satisfying himself that financial controls and systems of risk management are robust and defensible

Which will be Alex’s responsibilities?

Select ONE answer:

1. 1, 2 and 3
2. 2, 3 and 4
3. 1, 2 and 4
4. 1, 3 and 4

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > The role of a non-executive director is to monitor the reporting of performance by the executive directors, not to do the reporting themselves. These rules are set out in the supporting principle for the main principle A4 (leadership: non-executive directors) in the Code.

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