Role of Independent Non-Executive Directors Essay

Role of Independent Non-Executive Directors - Essay ExamplePerhaps the close summarized in the Federal Law On Joint Stock Companies, which refers primarily to the freedom of Board members from the management. Incidentally, the explanation of independence of directors is given in Sec. 9, The interest in the commission of public transactions, so this definition can be regarded as purely utilitarian. A much more detailed vision of independent directors make the Code of Conduct and the Association of investor protection . Last added to the list of groups that should not impinge on the directors, yet the state, as well as major shareholders and partners of the company. Perhaps, except for employees (excluding top management), lists all of steykholde-ditch. However, if we take into account our current realities, placing the companys employees to the stakeholders (directly or through participation in trade unions) will be more a tribute to the generally accepted world practice, rather than a reflection of reality (Arbouw, 2004, pp. 8). Thus, in the most general case, it can be argued that an independent director is independent from all stakeholder groups. Of course, on that point is a statistic that confirms that the involvement of independent directors correlates with the high efficiency of enterprises and their degree of success. Moreover, already in 1992 Cadbury report was published, which stated that the level and number of non-executive directors on the board of directors shall be such that their views have made a significant contribution to the finis of the Board of Directors. Later, in 1998, these provisions were reaffirmed in the group, Sir Ronald Hampel of the fundamental principles of corporate governance. However, I venture to suggest that the need for independent directors in the UK there was still originally than the institution of independent directors. In his article, M. Samosudov concludes that, in speaking of independence of directors, to talk about the independence of judgments of the Board of Directors (Barratt, 2002, pp.9). That is understood that members of the board of directors and board of directors as a whole should be in every situation to express opinions, make decisions, guided solely by considerations of their own professionalism and efficiency of the company as a whole, but not by considerations of any individual participants of corporate relations. Then we come to the following conclusion the independent director is a highly serve specialist who can satisfy the needs to implement the functions and exercising the authority of the Board of Directors the most effective way, regardless of the views of various stakeholder groups. Main Body From this definition we can draw three conclusions. First, an independent director - not a position, and the profession, such as, for example, an electrical engineer or an accountant, with all ensuing consequences. Secondly, any shareholder, universe of sound mind and memory of, must carry out the appointment of board members only from among the independent directors (the best, besides no one is appointed by, say, a professional accountant to the position electrician). And thirdly, to the service must be approached with the same criteria as any other service or any other proceeds the light of its value (how effective or that the applicant) and prices (the value of his services). As an option - to hold a competition for filling vacant board member. It is clear that, if we fling from consideration all animate objects, the Company is a mere collection of assets and related liabilities to shareholders and third parties. Therefore, to talk about the public interest makes no sense. However, there are a lot of sense to talk about the interests of employees and its top managers. In this case we have to, first, to