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متابعة

What is cross directorship and how does it undermine independence of Non Executive Directors ?

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تم إضافة السؤال من قبل Amr Ebeid , Financial controller , Majan University College SAOG www.majancollege.edu.om
تاريخ النشر: 2014/02/04
Adnan Ameen Bakather
من قبل Adnan Ameen Bakather , Founder & Managing Director , Consult & Perform

Cross directorship is setting in several rooms of different firms. It can be considered a normal where there is a shortage of directors’ labour market. However, different codes of corporate governance and regulations of listing impose certain guideless pertaining to cross directorship. These are necessary to avoid possibility of undermining independence of directors. Cross directorship can undermine the independence via negligence, failure to follow, mixing duties, and conflicts of interests among firms (especially in case of conglomerate and family business where tunnelling and other harmful activities can be conducted between companies). 

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