What is the primary function of executive directors?

Executive directors play a crucial role within a company by combining their responsibilities as board members with management functions. This dual role allows them to be actively involved in the day-to-day operations and decision-making processes of the organization while also participating in strategic discussions and policy development at the board level. By engaging directly with both the management team and the board, executive directors ensure that the company's strategies and operational plans are aligned, thus facilitating effective governance and operational efficiency. Their involvement in management responsibilities enables them to bring valuable insights into strategy formulation, as they are directly aware of the company's challenges and opportunities.

Other choices reflect distinct roles that do not encompass the full scope of executive directors' responsibilities. For example, policy-making alone is not sufficient to describe their contributions, since executive directors also manage operations and collaborate with other board members. Similarly, representing shareholders is more aligned with the role of non-executive directors, who focus on oversight rather than management. Acting solely in an advisory capacity does not capture the active functions that executive directors perform in managing the company.