DRILL (TYPES OF DIRECTORS)

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Last updated 5:15 PM on 4/12/26
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10 Terms

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Non-executive director

formally appointed director who does not manage daily operations and instead provides independent oversight

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Alternate director

person appointed to act in place of a director, only valid if authorised by the articles or board

3
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Shadow director

person in accordance with whose instructions the board is accustomed to act, operating behind the scenes without acting as a director

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De facto director

person who acts as a director in practice (makes decisions, signs documents, leads meetings) without formal appointment

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Company secretary

officer responsible for administrative and compliance duties, not involved in directing company decisions

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De facto director exam

acts openly as a director (visible role, decision-making power, represents company)

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Shadow director exam

influences directors indirectly (board follows their instructions, but they do not present themselves as a director)

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Non-executive director exam

must be formally appointed, even if not involved in management

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Alternate director exam

only valid if replacing another director with proper authority

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