Posts

Showing posts from December, 2020

Company Law: Corporate Boards, Directors' Duties and the tension between Shareholder and Stakeholder theories.

Image
What problems can you identify in relation to the structure of the corporate boards? In line with international corporate governance trends, the UK has made use of the concept of the non-executive director. Their role is to make sure that abuse of process does not occur. Non-executive directors are directors from other companies (or organisations) who come and sit on the board of another company in order to ensure that there are appropriate checks and balances in terms of there being the possibility of dissenting, notionally independent voices. Having a certain number of independent non-executive directors is strongly recommended in influential but non-statutory publications like the Wates Corporate Governance Principles for Large Private Companies, the UK Corporate Governance Code and the LSE Listing Rules.  One prime area where this is said to occur is in ensuring that the executive directors in companies were not being overpaid (via the remuneration committee of the board). Theoreti