The independent director on the board of company directors

This paper examines the views of directors of public listed Australian companies regarding the role of the independent director and the significance of that role in relationship to the composition of the Board of Company Directors (BOCD). The preferred model for board composition in Australian publi...

Full description

Bibliographic Details
Main Authors:	McCabe, Margaret, Nowak, Margaret
Format:	Working Paper
Published:	Graduate School of Business, Curtin University of Technology 2006
Subjects:	independent company directors board performance company board composition Boards of Company Directors Non-executive directors company director integrity
Online Access:	http://hdl.handle.net/20.500.11937/43599

id	curtin-20.500.11937-43599
recordtype	eprints
spelling	curtin-20.500.11937-435992017-01-30T15:08:40Z The independent director on the board of company directors McCabe, Margaret Nowak, Margaret independent company directors board performance company board composition Boards of Company Directors Non-executive directors company director integrity This paper examines the views of directors of public listed Australian companies regarding the role of the independent director and the significance of that role in relationship to the composition of the Board of Company Directors (BOCD). The preferred model for board composition in Australian public listed companies is that of a majority of Non-Executive Directors. Whilst this model is promoted in Australia there is conflicting evidence surrounding the claim that a majority of independent members in the board structure contributes to high levels of performance.The data reported were collected in qualitative research which examined the perceptions of governance practice held by a group of Australian company directors holding positions on boards of public listed companies between 1997 and 2000. The research is looking at directors? perceptions of how and why independent directors contribute to board performance The analysis indicates that participating directors were convinced that a majority of Non-Executive Directors provided a safeguard for a balance of power in the board/management relationship. The difference between Non-Executive Directors, who are also independent directors, and Non-Executive Directors who are not independent, was an important distinction which was highlighted. The capacity for board members to think independently was seen to be enhanced, but not necessarily ensured, with majority membership of Non-Executive Directors. However, a majority of independent minds expressing multiple points of view was perceived to reduce the board room hazard of ?group think?. 2006 Working Paper http://hdl.handle.net/20.500.11937/43599 Graduate School of Business, Curtin University of Technology fulltext
repository_type	Digital Repository
institution_category	Local University
institution	Curtin University Malaysia
building	Curtin Institutional Repository
collection	Online Access
topic	independent company directors board performance company board composition Boards of Company Directors Non-executive directors company director integrity
spellingShingle	independent company directors board performance company board composition Boards of Company Directors Non-executive directors company director integrity McCabe, Margaret Nowak, Margaret The independent director on the board of company directors
description	This paper examines the views of directors of public listed Australian companies regarding the role of the independent director and the significance of that role in relationship to the composition of the Board of Company Directors (BOCD). The preferred model for board composition in Australian public listed companies is that of a majority of Non-Executive Directors. Whilst this model is promoted in Australia there is conflicting evidence surrounding the claim that a majority of independent members in the board structure contributes to high levels of performance.The data reported were collected in qualitative research which examined the perceptions of governance practice held by a group of Australian company directors holding positions on boards of public listed companies between 1997 and 2000. The research is looking at directors? perceptions of how and why independent directors contribute to board performance The analysis indicates that participating directors were convinced that a majority of Non-Executive Directors provided a safeguard for a balance of power in the board/management relationship. The difference between Non-Executive Directors, who are also independent directors, and Non-Executive Directors who are not independent, was an important distinction which was highlighted. The capacity for board members to think independently was seen to be enhanced, but not necessarily ensured, with majority membership of Non-Executive Directors. However, a majority of independent minds expressing multiple points of view was perceived to reduce the board room hazard of ?group think?.
format	Working Paper
author	McCabe, Margaret Nowak, Margaret
author_facet	McCabe, Margaret Nowak, Margaret
author_sort	McCabe, Margaret
title	The independent director on the board of company directors
title_short	The independent director on the board of company directors
title_full	The independent director on the board of company directors
title_fullStr	The independent director on the board of company directors
title_full_unstemmed	The independent director on the board of company directors
title_sort	independent director on the board of company directors
publisher	Graduate School of Business, Curtin University of Technology
publishDate	2006
url	http://hdl.handle.net/20.500.11937/43599
first_indexed	2018-09-06T23:30:30Z
last_indexed	2018-09-06T23:30:30Z
_version_	1610902804626407424

The independent director on the board of company directors

Similar Items