Independence of directors

  •  The first aspect of independence addresses a state of mind of a Director.

  • All directors (Executive, Non-Executive and Independent Non-Executive) must be in a position to take independent decisions when dealing with affairs of the company

  • One writer says a director must be willing to walk away from the company (in cases in which powerful and influential people are giving instructions that are contrary to good corporate governance.

  • A close relationship with company management might create doubts about a director’s independence

  • The claims by some former SOE directors that meetings were taking place outside of the confines on the approved structures in which important decisions about those SOEs were taken is a direct violation of the need to be independent

  • The board appearance fees are also cited as a reason which makes people ignore the independence requirement

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By murweb