Sunday, June 05, 2005

Independent directors

Having independent directors on the Boards of listed companies had long been an accepted canon of good and sound corporate governance. However, how independent is independent is a puzzle that has not been solved to anyone's full satisfaction. For, those invited to be independent directors, unless nominated by the regulatory bodies themselves, whether the entrenched insiders liked them or not, are bound to feel a sense of obligation to those managing the company the moment they are inducted.

See full Article.