- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
- Posts
Hi Sir,
Would independence of a NED include them having to be independent in the industry, or just independence from the company is enough?
I’ve seen somewhere that at least one NED should be completely independent from the whole industry in order to be a fresh pair of eyes on the board. But I’ve not come across this in your notes, and wasnt sure if this is something that i could bring up as a business risk.
It says:
“…it is sometimes easier to demonstrate independence when NEDs are appointed from outside the industry. In addition to the benefits of the ‘new broom’ effect of bringing a fresh pair of eyes to a given problem…”So that’s not a requirement – nor a business risk if a company does not have a NED who is independent of the industry. I suggest you would need to look at the “given problem” to identify the potential business risk.
- You must be logged in to reply to this topic.