Public sector organisations must follow the Nolan principles on openness and transparency in public life. They must be seen to encourage people from different backgrounds and constituencies to participate in public life, and they must recruit openly and impartially.

Quoted companies are expected to follow the guidelines within the Combined Code, and soon the Higgs Review recommendations. 

Add value to my business 

Private companies are not required to comply with the Codes, but many chose to do so, as they have observed that compliance with best practice can lead to a better directed business and increased shareholder value. 

A sounding board 

Chief Executives and Business Founders occupy a notoriously lonely position, and are unable to share their innermost concerns with their managers and employees. A non-executive director will be a good listener, who can see problems from a wider and perhaps more balanced perspective, and provide a sounding board for the CEO to evaluate different strategies both during and between board meetings. 

Breadth of board experience 

A non-executive director can add experience from companies of other size and scale, in other sectors, and from other countries. This will contribute to the breadth of debate on strategic issues facing the company. 

Audit committee 

Quoted companies, charities and public sector organisations will have an audit committee requiring non-executive members and a chair.