Financial Daily from THE HINDU group of publications
Thursday, Sep 29, 2005
Financial Daily from THE HINDU group of publications Thursday, Sep 29, 2005 |
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Opinion
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Letters Independent directors
This refers to the article `Independent directors must serve on fewer boards' (Business Line, September 23). The proposal put forward by Mr Pramod Bhasin, President & CEO, GECIS Global, that, "directors should interact with other senior management and staff in their chosen areas of interest to get a better understanding of the company" is fraught with the danger of running a parallel structure to the board. This might render CEOs somewhat ineffective creating, as it does, dual power centres. A similar proposition came up in the UK and received lukewarm response. Such a decision goes against the principle that the non-executive member functions at the board level. This principle helps balance the views among the board members and in achieving cohesion. Instances of suggestions of this kind abound and are often the result of an over enthusiastic and theoretical pursuit of good corporate governance practices. S. Subramanyan
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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