The role of independent directors is considered pivotal to the company’s growth and effective management in today’s day and time
The origins of the concept of independent directors can be traced to the United Kingdom and United States of America. In the United States of America, in the second half of the 20th century, listed companies were encouraged to have at least two ‘outside directors’ on their boards. This was primarily to introduce objectivity to the decision-making process, provide a solution to management-shareholder conflicts, and improve performance of the company. However, corporate scandals like Enron and Worldcom, featuring management transgressions like poor reporting standards, ignorance of high risk issues, unsanctioned loans and guarantees, accounting loopholes, etc. prompted amendments to the listing rules of key stock exchanges like NYSE and NASDAQ.1 These changes also found legislative backing with the enactment of the Sarbanes Oxley Act of 2002, which provided for listed company audit committee independence requirements and responsibilities.
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Denne historien er fra June 2017-utgaven av LegalEra.
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If You Think Positive Covid Is A Big Opportunity
Senior Vice President and Head of Legal, ESSAR CAPITAL, Badrinath Durvasula, holds forth on his professional journey, the essence of leadership, working from home, books and more…
PROJECT DEVELOPMENT
JOINT VENTURE TRANSACTIONS
NEW ARBITRATION RULES
PUBLISHED BY THE LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) AND INTERNATIONAL CHAMBER OF COMMERCE (ICC)
M&A in the time of COVID and beyond
What is clear for those engaging in cross-border M&A is that countries around the world are becoming increasingly protective of their economies and industries, with new rules being introduced and existing rules being more widely applied
SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD
Swiss law interprets the offense of fraud in a special way where in addition to the characteristics of deception and damage as known in many jurisdictions, a qualified lie, i.e. a malicious approach, is required
JOINT VENTURE DISPUTES MEDIATING
Mediation has shown itself to be a powerful tool for bringing a speedy and effective end to crossborder disputes while preserving the commercial relationship between them.
Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA
A TEST CASE IN THE MAKING?
CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE
Two recent developments in Singapore case law and legislation reflect a willingness to preserve confidentiality related obligations in all arbitrations
ESSENTIAL GOODS SERVICES UNDER IBC
WHAT DOES IT ESSENTIALLY MEAN?
A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE
A LOOK AT THE KEY CHANGES PRESIDENT-ELECT BIDEN IS LIKELY TO MAKE ONCE HE TAKES OFFICE
