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Corporate Governance. (Senior Independent Director)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Corporate Governance. (Senior Independent Director)

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.
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  • June 17, 2024 at 8:15 am #707346
    VikasK
    Participant
    • Topics: 98
    • Replies: 118
    • ☆☆☆

    Greetings Tutor, I hope you are doing well.

    Can you please help me in the following points of Corporate Governance specific provisions.
    “The Board should appoint one of the independent Non-Executive Director to be senior independent director”

    Q- Can you explain me what exactly is a Senior Independent Director and what function does such director performs within the board to contribute towards Corporate Governance.

    June 17, 2024 at 10:09 am #707354
    Kim Smith
    Keymaster
    • Topics: 134
    • Replies: 8304
    • ☆☆☆☆☆

    The SID provide a “sounding board” for the chair and serves as an intermediary for the other directors and shareholders.

    I haven’t seen this examined in AA (or even AAA) since it is specific to the UK Code of Corporate Governance which is only examinable as an example of best practice, so candidates are not required to learn specific details.

    But if you’re particularly interested in it, you can read about it here https://www.thembsgroup.co.uk/internal/the-role-of-the-senior-independent-director

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