Genius Methods recently hosted a panel debate in London on the benefits and risks of NED independence and produced a White Paper from the results.
Chairman of Genius Methods, Alan Hindley, said that ‘a key importance of NED independence is to provide an empowered ‘check and balance’ position that fights group think, prevents ‘cliques’, and protects unrepresented stakeholders’.
When discussing director independence, what do we mean? What should NED’s be independent from? It was concluded by the group that directors should be ‘independent from being influenced from independent thought in the process of debating, challenging and reaching a decision’. The FRC UK Corporate Governance Code states that ‘the board should determine whether the director is independent in character and judgement and whether there are relationships or circumstances which are likely to affect, or could appear to affect, the director’s judgement’. However, all directors have the same responsibilities and should adhere to the same moral and ethical codes.
Read the full White Paper and let us know what you think!