Financial Daily from THE HINDU group of publications
Thursday, Sep 29, 2005

Port Info

Group Sites

Opinion - 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:

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Share Infoline Tata Safari Dicor

Stories in this Section
Manufacturing growth

Harmony in the works
Don't spread your spreadsheet too thin, too wide
An old problem with a vague solution
Will CAs be the new financial scorekeepers?
Is the stock market boom a sideshow?
FDI in retail — A question of jobs, not ownership
Time for an entrepreneurship policy
Housing policy
Independent directors
Welcome cover

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line