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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).
