Independent board: Difference between revisions
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(definition from private sector, for use in resolving corruption claims and so on) |
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An '''independent board''' of advisors and/or directors is one of the requirements to legally take charitable contributions in many countries. All large charities have one. They are absolutely necessary to attract any major donor. | An '''independent board''' of advisors and/or directors is one of the requirements to legally take charitable contributions in many countries. All large charities have one. They are absolutely necessary to attract any major donor. | ||
They are also often appropriate in government tasks. See [http://www.fas.org/sgp/congress/2004/s2672.html] which specifies "an independent board to review current and make recommendations for new standards and procedures for the classification of information for national security | |||
purposes" in the USA. Presumably selection of directors would be state of the art given US concerns with its [[national security]], and should be looked at as a model. | |||
Private sector companies that are publicly traded also require such boards. "Currently, in India and the UK, the Listing Agreement and the City Code provide that non-executive directors should be independent of management and free from any business or other relationship which could interfere with the exercise of their independent judgement, leaving the board to identify the parameters, which leaves the issue open-ended." [http://fecolumnists.expressindia.com/full_column.php?content_id=28785 a call for independent board members in the Financial Express of India] which goes on to document the [[w:Higgs and Naresh Chandra Committee]] in India which: | Private sector companies that are publicly traded also require such boards. "Currently, in India and the UK, the Listing Agreement and the City Code provide that non-executive directors should be independent of management and free from any business or other relationship which could interfere with the exercise of their independent judgement, leaving the board to identify the parameters, which leaves the issue open-ended." [http://fecolumnists.expressindia.com/full_column.php?content_id=28785 a call for independent board members in the Financial Express of India] which goes on to document the [[w:Higgs and Naresh Chandra Committee]] in India which: | ||