Independent board: Difference between revisions
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. | ||
The [[CGO]] will have a strictly independent board of directors that will be legally responsible for what the [[Publish Wiki]] broadcasts about companies and products. Any [[groupthink]] in this respect is extremely dangerous, as, believing one's own bullshit (see [[Wikipedia]]) can destroy any charitable group. Auditors and regulators take commitments to charitable donors very seriously. | 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: | ||
"...defines an '''independent director''' as a non-executive person not having any pecuniary relationships or transactions with the company, its promoter, management and associated companies, including that of vendor, auditor or attorney, or family ties with promoter/management, or having substantial shareholding. | |||
The Higgs report has defined independence to exclude certain relationships or circumstances which could affect the director�s impartiality. As in the NCC report, this covers former employees having existing or former business relationships, family ties, significant shareholding in the company etc. The additional features are the bar on holding of cross-directorships or significant links with other board members, participation in a company�s share option or performance-related payout scheme. The Higgs report specifically recommends that it is important that the concerned director is not so dependent on the income from his role so as to prejudice the independence of judgement. | |||
Both the reports have opined that independent directors have to be represented in a majority � not less than 50 per cent of the board should consist of independent directors." | |||
Obviously the [[Wikimedia]] [[worst practices]] do not lead to such a board. | |||
The [[CGO]] will have a strictly independent board of directors that will be legally responsible for what the [[Publish Wiki]] broadcasts about companies and products - and which selects or fires the [[Chief Editor]]. It will run [[Consumerium Governance Organization election]]s. | |||
Any [[groupthink]] in this respect is extremely dangerous, as, believing one's own bullshit (see [[Wikipedia]]) can destroy any charitable group. Auditors and regulators take commitments to charitable donors very seriously. | |||