The role of independent directors is to help protect a company from mismanagement and enhance its value. They must speak out if they disagree on a particular issue or believe a deal will be detrimental to shareholders. They can opt not to sign off and just walk away, say experts.
(Nov 11): Typically, to snag a seat on a company’s board, you have to be known or connected to the board members, the CEO or the major shareholders. It is a job most seasoned former corporate heads covet after retirement.
As Professor Stéphane Garelli, founder of the IMD World Competitiveness Centre, put it during the International Directors Summit 2019 in Kuala Lumpur recently, “being a member on the board of directors is prestigious [for it signifies] that you are part of the club and that you have been courted”.