At times independent directors can also bring specific expertise from their sector and/or personal experience.
An independent director is a member of a company’s board of directors (BoD) that the company brought in from outside. The general consensus among stockholders is that independent directors improve the performance of a company through their objective view of the company’s health and operations.
At times independent directors can also bring specific expertise from their sector and/or personal experience.
For example, a company specialising in health technologies might bring in an outside director with a prestigious medical background and degree to provide additional insight into the science behind their products.
Because independent outside directors haven’t worked with the company for a period of time, they aren’t existing managers and do not have ties to the company’s current way of doing business.
Independent directors can bring new insights and balance to a team; however, some downsides also exist.
From the Book – ‘ Know Everything about Corporate Social Responsibility ‘
Available on Amazon.in
Also Read:
- What is Humanistic Management?
- What is the Public Enterprise?
- What is a Private Firm?
- What is Family Owned Business?
- What is Corporate Financial Performance?
- What is Profit?
- What is Bottom of the Pyramid?
- What are the Basics of Corporate Structure?
- What is Corporate Governance?
- What is E-Governance?
- What is Status of E-Governance in India?
- Corporate Governance and the Board of Directors
- Who is an Independent Director?
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