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Alternative Perspectives on Independence of Directors
Author(s) -
Brennan Niamh,
McDermott Michael
Publication year - 2004
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/j.1467-8683.2004.00373.x
Subject(s) - independence (probability theory) , accounting , irish , consistency (knowledge bases) , stock exchange , business , finance , computer science , statistics , mathematics , linguistics , philosophy , artificial intelligence
This paper examines the issue of independence of boards of directors and non‐executive directors of companies listed on the Irish Stock Exchange. Based on information published in annual reports, the study found that most Irish listed companies were complying with the Combined Code's recommendations for a balanced board structure, albeit with only 60 per cent having majority‐independent boards. The study found a lack of consistency in interpreting the definition of “independence”, a lack of disclosure of information and, by applying criteria generally regarded as prerequisite to independence of non‐executive directors, certain situations which imposed upon their independence.