Page 124 - SBL Integrated Workbook STUDENT 2018

Chapter 11

2.4 Threats to independence

 Material business relationship in last 3 years

 Employee in last 5 years

 Cross directorship in other companies

 Remuneration form the company besides director’s fee

 Close family ties with director

 Significant shareholder

 Serves on board for more than 9 years

2.5 NEDs on the board

Advantages Disadvantages

 monitoring role  unity of the board

 additional expertise  quality of NEDs

 enhanced perception of  liability of the role.
company

 communication with
stakeholders

 discipline over strategy.

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