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However, most Singapore companies follow a common corporate structure with at least a few executive directors on their board.",[1462,1464],{"_key":1446,"_type":188,"externalUrl":1463,"linkType":145},"https:\u002F\u002Faspireapp.com\u002Fblog\u002Fwhy-incorporate-in-singapore",{"_key":1455,"_type":188,"externalUrl":1465,"linkType":145},"https:\u002F\u002Faspireapp.com\u002Fblog\u002Fwhat-is-a-nominee-director-and-how-do-you-appoint-one-in-singapore",{"_key":1467,"_type":170,"children":1468,"markDefs":1473,"style":190},"k115",[1469],{"_key":1470,"_type":174,"marks":1471,"text":1472},"k114",[],"Singapore has certain criteria that must be followed when appointing a director (including an executive director):",[],{"_key":1475,"_type":170,"children":1476,"level":1251,"listItem":1252,"markDefs":1481,"style":190},"k118",[1477],{"_key":1478,"_type":174,"marks":1479,"text":1480},"k117",[],"They must be a natural person (and not a business entity), 18 years of age or more, and of sound mind.",[],{"_key":1483,"_type":170,"children":1484,"level":1251,"listItem":1252,"markDefs":1489,"style":190},"k121",[1485],{"_key":1486,"_type":174,"marks":1487,"text":1488},"k120",[],"They must be financially sound (not bankrupt), not convicted of fraud or crimes involving dishonesty, not disqualified as an unfit director at another company, or a director of a company that ended up being shut down.",[],{"_key":1491,"_type":170,"children":1492,"level":1251,"listItem":1252,"markDefs":1497,"style":190},"k124",[1493],{"_key":1494,"_type":174,"marks":1495,"text":1496},"k123",[],"They must have the necessary experience and skills to live up to such a position of authority.",[],{"_key":1499,"_type":170,"children":1500,"markDefs":1514,"style":190},"k132",[1501,1505,1510],{"_key":1502,"_type":174,"marks":1503,"text":1504},"k129",[],"Once appointed, an executive director’s name and details (complete address, contact number, email address, nationality, identification number, date of appointment, etc) must be entered by the company in its Register of Directors. This is mandatory under the",{"_key":1506,"_type":174,"marks":1507,"text":1509},"k130",[1508],"k126"," Companies Act",{"_key":1511,"_type":174,"marks":1512,"text":1513},"k131",[],". Any changes and updates to the entries (for example, the end of a director’s tenure and the appointment of a replacement) must be filed on ACRA’s online filing portal BizFile+ within 14 days.",[1515],{"_key":1508,"_type":188,"externalUrl":1516,"linkType":145},"https:\u002F\u002Fwww.acra.gov.sg\u002Fhow-to-guides\u002Fsetting-up-a-local-company\u002Fmaintaining-company-registers",{"_key":1518,"_type":170,"children":1519,"markDefs":1524,"style":1190},"k135",[1520],{"_key":1521,"_type":174,"marks":1522,"text":1523},"k134",[1187],"How is an executive director appointed?",[],{"_key":1526,"_type":170,"children":1527,"markDefs":1532,"style":190},"k138",[1528],{"_key":1529,"_type":174,"marks":1530,"text":1531},"k137",[],"The common practice of appointing an executive director in Singapore is by passing an ordinary resolution (a decision backed by 50% of the votes cast) at a general meeting of the company. The resolution must include the candidate’s name, the date of appointment, and the terms of the appointment. The individual being chosen must also consent to the appointment.",[],{"_key":1534,"_type":170,"children":1535,"markDefs":1540,"style":190},"k143",[1536],{"_key":1537,"_type":174,"marks":1538,"text":1539},"k142",[],"While this is the most common route to naming an executive director, more specific appointment procedures might be laid out in the company constitution, which is a document outlining the rules of governance of the company. These might include the right to appoint an executive director by other directors, shareholders, investors, etc.",[],{"_key":1542,"_type":170,"children":1543,"markDefs":1548,"style":1190},"k146",[1544],{"_key":1545,"_type":174,"marks":1546,"text":1547},"k145",[1187],"How can an executive director be removed?",[],{"_key":1550,"_type":170,"children":1551,"markDefs":1556,"style":190},"k149",[1552],{"_key":1553,"_type":174,"marks":1554,"text":1555},"k148",[],"Similarly, the passage of an ordinary resolution is usually enough to remove an executive director before the end of their tenure for any number of reasons, including poor conduct, lack of leadership, subpar results, conflicts of interest, etc. A 14-day notice is given to both the executive director and shareholders before the meeting. However, the procedure might be slightly different if the executive director’s contract includes a specific removal process. Furthermore, the removal of an executive director is considered complete only after their replacement has been appointed and their details updated with ACRA within 14 days.",[],{"_key":1558,"_type":170,"children":1559,"markDefs":1564,"style":190},"k152",[1560],{"_key":1561,"_type":174,"marks":1562,"text":1563},"k151",[],"Executive directors are also free to quit. They simply need to write a letter of resignation and serve a notice period as per the terms of their contract.",[],{"_key":1566,"_type":170,"children":1567,"markDefs":1572,"style":1190},"k155",[1568],{"_key":1569,"_type":174,"marks":1570,"text":1571},"k154",[1187],"Executive director vs managing director",[],{"_key":1574,"_type":170,"children":1575,"markDefs":1580,"style":190},"k158",[1576],{"_key":1577,"_type":174,"marks":1578,"text":1579},"k157",[],"As mentioned earlier, managing directors are chosen from among executive directors and given the charge of managing the company’s daily affairs. Therefore, the differences between an executive director and a managing director lie mostly in their responsibilities but also in their experience and rank to a certain extent.",[],{"_key":1582,"_type":170,"children":1583,"markDefs":1588,"style":190},"k161",[1584],{"_key":1585,"_type":174,"marks":1586,"text":1587},"k160",[1187],"1. Responsibilities",[],{"_key":1590,"_type":170,"children":1591,"markDefs":1596,"style":190},"k164",[1592],{"_key":1593,"_type":174,"marks":1594,"text":1595},"k163",[],"Executive directors create and carry out strategy and establish goals and objectives in collaboration with the board of directors. They have the power to make autonomous decisions. Executive directors are also involved in day-to-day business operations but not to the extent a managing director is. They provide leadership to the company and are the central figures in any fundraising effort.",[],{"_key":1598,"_type":170,"children":1599,"markDefs":1604,"style":190},"k167",[1600],{"_key":1601,"_type":174,"marks":1602,"text":1603},"k166",[],"Managing directors are more hands on in their day-to-day dealings. They, too, create business plans and put them to work but they also execute the plans developed by the board. Furthermore, they oversee budgets, hire talent, take steps to keep existing employees happy, attend meetings, make presentations, go on business trips, establish relationships with important shareholders, and speak to the press, among others.",[],{"_key":1606,"_type":170,"children":1607,"markDefs":1612,"style":190},"k170",[1608],{"_key":1609,"_type":174,"marks":1610,"text":1611},"k169",[1187],"2. Rank",[],{"_key":1614,"_type":170,"children":1615,"markDefs":1620,"style":190},"k173",[1616],{"_key":1617,"_type":174,"marks":1618,"text":1619},"k172",[],"Executive directors are considered the highest ranked executives in a company. They head the board of directors, develop the company’s strategy and goals, and recruit and lead the next rung of leaders. However, they are also answerable to the board of directors.",[],{"_key":1622,"_type":170,"children":1623,"markDefs":1628,"style":190},"k176",[1624],{"_key":1625,"_type":174,"marks":1626,"text":1627},"k175",[],"Managing directors take direct orders from the board of directors and the chief executive officer, if there is one, while heading the company’s department heads and senior managers.",[],{"_key":1630,"_type":170,"children":1631,"markDefs":1636,"style":190},"k179",[1632],{"_key":1633,"_type":174,"marks":1634,"text":1635},"k178",[1187],"3. 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They are usually hired from outside the company for their knowledge and expertise in various fields such as finance, marketing, law, governance, and so on. Instead of a salary, they receive a director’s fee for their services.",[],{"_key":1703,"_type":154,"height":1704,"position":1289,"url":1705,"width":1291},"k204",262,"https:\u002F\u002Fcdn.aspireapp.com\u002Fwebsites\u002Fblog\u002F346510109cf9029761ab1f73aa639231\u002Fwhat-is-an-executive-director_body_what-is-an-executive-director-body_3.gif",{"_key":1707,"_type":170,"children":1708,"markDefs":1713,"style":190},"k207",[1709],{"_key":1710,"_type":174,"marks":1711,"text":1712},"k206",[1187],"3. 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For example, being a non-executive director in Singapore with a legal background would mean familiarity with the Companies Act, its code of corporate governance, industry-specific regulations, and the country’s unique business culture.",[],{"_key":1739,"_type":170,"children":1740,"level":1251,"listItem":1252,"markDefs":1745,"style":190},"k219",[1741],{"_key":1742,"_type":174,"marks":1743,"text":1744},"k218",[],"Non-executive directors also act as a counter to executive directors. This includes questioning the executive directors’ decisions and actions and seeking accountability when the need arises. 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