The Role of Independent Directors in Corporate Governance

Student details:

ESSAY 1
The code of conduct and corporate governance states that the BOD must
render directions to an organisation. The board of director should examine, select
the approaches, and remove and hire CEO. The board of directors are required to
agree the compensation of the board members. It is required by the independent
director to emphasis on capability or efficiency of risk management systems and
inner control. It is anticipated by the independent directors to secure interests of non-
regulating shareholders. They must be aware to recognise the feebleness and must
perform strictly while needed. Enron and World com are good example, where
various independent directors may not stop the main commercial disaster. The
independent director has to face various challenges. It is expected by the
government that an independent director should make independent judgements to
tolerate the deliberation of the members specifically on issues related to strategies,
management of risk, presentation, major appointment, and norms of behaviour. They
are required take objective opinions in assessment of board’s performances. This
essay evaluates the supervisory framework that renders independent director the
power with objectivity to make sure that the authorities must be performed in the
proper and fair manner and not in an extensive way.
It is generally admitted that if the independent directors are present in the
boardroom, then the quality of corporate governance will be improved. Therefore, the
corporate governance mechanism focuses on the independent director of the
company. The independent Director is an individual having many experiences and
performs as the direction for an organisation. The role of the independent director
includes generally includes making improve the corporate reliability and supremacy
norms, functions as overseer. They also have dynamic role in risk management. An
independent director has major part in numerous groups to be set by the

ESSAY 2
organisation to make sure great governance. It is required by the listed organisations
to set the audit committee of at least 3 directors, on which, two-third must be the
independent director.
The very significant functions to monitor the board are to give guidance to an
organisation. In the professionally managed organisation, where no person or
community keeps important voting right, a chief executive officer makes the
approaches. The businesses have various groups of shareholders, whose interest is
influenced by the approaches, procedures and functions of the business shareholder
communities having low interest levels and high authorities must be kept gratified to
stop those achieving interestsand becoming the group member, which has high
degree of interests and high authority. The directors make sure involvement by
group of shareholders, which have high level of interest and great authority. The
reason is that they are maincarters of the modifications and mainrivals of the
approaches.
In scope of the corporate governance model, the main part of an independent
director is to secure the interests of the non-controlling stakeholders. In respect of
the modern model, the independent directors are anticipated to consider two extra
duties. The independent directors are required that the administrative organisation is
creating severe efforts to fulfil the general expectation and to perform as the
authority in the argument between group of shareholders. In the current construction,
independent directors may not be capable to release the current duties and
additional responsibilities properly. Various studies across the world have so far
made to search whether independent director really contributes to firm enactment or
not and the outcome is mixed – affirmative, adverse, and mixed relations. The
independence of the board is dangerous to developing marketplace, which is matter

ESSAY 3
of external surprises and can lack adequate liquidness as well as aboriginal
manufacturing structure (Landry, Bernardi & Bosco, 2016).
The value of stakeholders may rises as dependence of the board enhances.
In different terms, when the board is more sovereign it executes poorer. It can be
reason that while director gets equity awards, tension is made between the board
reviewing and supervising the role. The complete concept behind requiring the
independent director was to make sure the organisations adopt good corporate
governance and secure the interests of lesser stakeholders. It is required by the
independent directors to perform mistake to stop wilful cooperation of the
shareholder’s interest. However, this is not fortunate that in various examples
organisations have created the scorn of the legal provisions needing of the
independent directors. Several make appointment of the associates and high profile
people who lack skills to be the independent director (Low, Roberts & Whiting,
2015).
In respect of Etisalat group, the stakeholders may communicate with the
company and the administrator automatically. The stakeholders may communicate at
any period over the Depositor Relationship team, with communication details
available online at the website. Shareholders and forecaster feedbacks are share
with the board through the Chairman and the top-level independent directors.The
Board is committed to making sure that most of directors are self-governing. The
Board considers all of the existing non-executive directors, involving the chairman,
are independent. As per policy, the independent director is director, who is
independent of organization and the businesses or other relations, which might
substantially impede with the implementation of the objectives, unconstrained or self-