The Importance of Board Independence - a Multidisciplinary Approach
Einde inhoudsopgave
The Importance of Board Independence (IVOR nr. 90) 2012/7.3.3.1:7.3.3.1 CEO duality
The Importance of Board Independence (IVOR nr. 90) 2012/7.3.3.1
7.3.3.1 CEO duality
Documentgegevens:
N.J.M. van Zijl, datum 05-10-2012
- Datum
05-10-2012
- Auteur
N.J.M. van Zijl
- JCDI
JCDI:ADS600616:1
- Vakgebied(en)
Ondernemingsrecht / Algemeen
Ondernemingsrecht / Corporate governance
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A very undesirable precondition of independence in the United Kingdom is the possibility to have CEO duality. A code provision recommends separating both positions, but a company can deviate from this by explaining why it has deviated from this code provision. Although only two companies out of the 150 largest companies in the United Kingdom have CEO duality, it is a very bad corporate governance practice. Therefore, it should be excluded by the Companies’ Act from an independence viewpoint.