Difference between non-executive and independent directors

I could not properly understand how an independent director(ID) is different from a non-executive director(NED). Here’s what I do understand (correct me if I am wrong):

  1. ID are a type of NED.
  2. ID do not work for the company.
  3. IDdo not have a material interest in the company.

But all of these points also seem to apply to NED. So how exactly do they differ?

Independent directors have no relationship with the company, non-executive directors, while not executives could have a relationship.

It probably makes the most sense with an example. A non-executive director could be an employee representative, or perhaps someone with some ties to a significant supplier/customer. Would it be right to call these non-executive directors independent directors? It would not.

An example of an independent director, for example, could be a CFA charter holder who was appointed to head the boards investment committee with no prior interactions with the company.

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Thanks a lot! The example really cleared things up.

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