The Hawkamah Journal issue 02/2013 | Page 34

justification for the latter is that boards may not welcome a top executive team with divergent views on important matters. On the other hand, each executive director has a responsibility to exercise independent judgement and to be frank with the board – which a sensible board should expect and welcome. There is considerable variation within unitary board arrangements. In the UK there is often an approximate balance between executive and independent board members: the UK Corporate Governance Code2 stipulates that at least half the board (excluding the chairman in the count) should be independent directors and that there should also be a significant number of executive directors on the board. In the US the traditional practice that the chairman of the unitary board will also be the CEO is diminishing in frequency so that it now applies only to a minority of Fortune 500