Legal analysis: Independent non-executive director: A non-executive director has no administrative or management responsibilities in the company he appoints. If he is independent of the management, and has not received any other benefits from the company except the directors' remuneration, he is regarded as independent. An independent executive director refers to a director who is independent of the company's shareholders, works within the company, has important business or professional contacts with the company or its management personnel, and makes independent judgments on the company's affairs. The so-called executive director is a director who participates in the operation of the enterprise himself. The executive director is also called an active director. It refers to a director who is appointed to hold a specific position within the board of directors and has professional responsibility for that position. The executive director is an employee of the company. The executive director only appears in a limited company without a board of directors and exercises the authority of the board of directors.
Legal basis: Article 50 of the Company Law of People's Republic of China (PRC). A limited liability company with few shareholders or a small scale may have an executive director instead of a board of directors. The executive director may concurrently serve as the company manager.
The functions and powers of the executive director shall be stipulated in the articles of association.