A non-executive director of a company should not be considered as a key management person by virtue of merely his being a director unless he has the authority and responsibility for planning, directing and controlling the activities of the reporting enterprise.
The requirements of this standard should not be applied in respect of a non executive director even if he participates in the financial and/or operating policy decision of the enterprise, unless he falls in any of the other categories.
Accounting Standards Interpretation (ASI) 23
Remuneration paid to key management personnel should be considered as a related party transaction requiring disclosures. In case non-executive directors on the Board of Directors are not related parties, remuneration paid to them should not be considered a related party transaction.
