Long at the heart of corporate governance policies has been the issue of Director independence. Having independent non-exectutive directors present in your company is considered a favorable option for protecting the interests of share holders and affected stakeholders.
The intent is to allow appropriate oversight and challenge management recommendations or proposals in a watchdog manner so that good corporate governance prevails. In the spirit of fairness, directors make objective decisions which may be in conflict with the self-interests of management. The role of the Independent Director is a vital function for preserving transparence for a well functioning company.
Having directors on each board who are free of any conflict of interest promotes a healthy corporate climate.