The Importance of Board Independence - a Multidisciplinary Approach
Einde inhoudsopgave
The Importance of Board Independence (IVOR nr. 90) 2012/11.5.1:11.5.1 Definition of independence
The Importance of Board Independence (IVOR nr. 90) 2012/11.5.1
11.5.1 Definition of independence
Documentgegevens:
N.J.M. van Zijl, datum 05-10-2012
- Datum
05-10-2012
- Auteur
N.J.M. van Zijl
- JCDI
JCDI:ADS598366:1
- Vakgebied(en)
Ondernemingsrecht / Algemeen
Ondernemingsrecht / Corporate governance
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The definitions of independence in the United Kingdom, the Netherlands and Sweden are composed of three building blocks: person, composition/structure and preconditions. The person building block primarily uses a definition of independence focused on the lack of relationships between the supervisor on the one hand and the company, executive directors or members of the management board on the other hand. This fits in with the disinterested outsider model. However, the social relationships section questions whether independence must be considered to be a lack of relationships. Independence is a state of mind that enables supervisors to see things differently, because they are at a distance from daily business and have experience and knowledge of the company. Independence is therefore rather a way of thinking than a way of being. The next chapter describes the results of a survey among supervisory directors in the Netherlands about their views on the (negative) influence of social relationships on independence.