Role of Independent Non-Executive Directors Essay

Role of Independent Non-Executive Directors - Essay Example perhaps the most summarized in the Federal Law On Joint Stock Companies, which refers primarily to the freedom of jury members from the management. Incidentally, the interpretation 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 self-directed directors make the Code of Conduct and the Association of investor protection . Last added to the list of groups that should not affect the directors, so far the state, as well as major sh areholders and partners of the company. Perhaps, except for employees (excluding top management), lists all of steykholde-ditch. However, if we take into account our circulating(prenominal) realities, placing the companys employees to the stakeholders (directly or through participation in trade unions) will be more a recommendation to the familiarly a ccepted world practice, rather than a reflection of reality (Arbouw, 2004, pp. 8). Thus, in the most general case, it can be argued that an autonomous director is self-supporting from all stakeholder groups. Of course, there 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 decision of the board of Directors. Later, in 1998, these provisions were reaffirmed in the group, Sir Ronald Hampel of the fundamental principles of embodied governance. However, I venture to suggest that the need for independent directors in the UK there was still earlier than the institution of independent directors. In his article, M. Samosudov concludes that, in speaking of independe nce 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 social unit should be in every situation to express opinions, make decisions, guided solely by considerations of their feature 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 qualified specializer who can satisfy the needs to implement the functions and exercising the authority of the Board of Directors the most effective way, irrespective 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 sha reholder, being of live on mind and memory of, must carry out the appointment of board members only from among the independent directors (the best, also 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 product the wild of its value (how effective or that the applicant) and prices (the value of his services). As an option - to hold a competition for woof vacant board member. It is clear that, if we exclude from consideration all animate objects, the Company is a true 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