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”.
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.
