not only due to the tendency to defer to the chairman of
the board, but because some directors (especially some
nominated ones) have insufficient experience to challenge
the executive or to challenge their co-directors.
Effectiveness of directors
There is good disclosure of directors’ other interests in
most published annual reports of listed companies in
the region. This rightly allows us to observe that many
directors on boards in the region appear to be overextended, and this seems to be a particularly acute problem
with respect to nominee directors. Including preparation
time, site visits and board committee membership, a time
commitment of between thirty and thirty-six days a year
for a non-executive director is unlikely to overstate the
real need. If a company is in difficulty, is facing a takeover
bid, is on the acquisition trail, is embarked upon a strategic
restructuring or is grappling with a crisis, the time
commitment may be significantly greater temporarily.
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