Letâs start by defining some of the responsibilities of a board member, and how they differ from the executive director. The law requires that the best interest of the nonprofit prevail over the directorâs personal or business interests; if the executive director is a paid staff person who sits on the voting board of directors, that executive director may have a conflict of interest by serving on the board. State Laws Govern Nonprofit Organizations A nonprofit organization is a corporation organized under state laws for a purpose that does not â¦ Nonprofit board members are legally bound to make decisions that are in the best interest of the group as a whole, rather than advancing the interests of an individual, such as a board member, the executive director or a staff member of the organization. This book should be on the âmust-readâ list of every corporate board member and senior executive." Strong Partners: Building an Excellent Working Relationship between the Nonprofit Board and its Chief Executive Evaluating the Executive Director: Your Role as a Board Member Finding the Opportunity in Economic Chaos Fundraising: A Partnership between Board and Staff Essential Keys to Nonprofit Finance Risk Management: Your Role as a Board Member He joined the National Industries Group (Holding), Kuwait, in 2001 and is currently Chief Financial Officer. Duty of obedience: A legalistic term that means, in essence, obey the rules. A board member handles the overall governance of a nonprofit and has both legal and fiduciary responsibilities. The Role of the Executive Director in the Board Meeting Board Members vs. Executive Directors. Board Member. While you have the tenacity and foresight to lead your business, you â¦ As a board of director member, it is your job to oversee the direction of the company. In cases where the executive director has a seat on the board, it's important to have an effective conflict of interest policy. In the absence of either Committee member retainers or meeting fees, a Director serving on multiple Committees receives the same pay as a Director serving on a single Committee. Although there are a lot of people who disagree with me, I have never had a problem with the founder serving as president of the board and executive director. Non-Executive Directors (NED) A non-executive director is also referred as an Outside director, a member of the board of directors in the company but not a part of the companyâs executive management team. This policy should state when it is necessary for any board member, including the executive director, to recuse themselves from certain votes or discussions where a â¦ Mr Sheikh has been a Non-Executive Director of the company since its privatisation in November 2005. I help many start-up nonprofits and this question of moving from board president (or member) to employee with retaining a board role comes up every time! However, the executive director is just an employee of the nonprofit who holds the position subject to the approval of the board of directors. As a result of the financial difficulties that many companies encountered during the 1980s and early 1990s, some companies allowed labor unions to designate one or more members of the firm's board of directors. Non-Executive Director. He is neither an employee of the company nor associated with the company in â¦ The first major company in the United States to elect a union leader to its board â¦ Boards That Lead offers an illuminating road map for how a board of directors can effectively engage and motivate its corporate management team to successfully navigate even the most complex of situations.