What is cross-directorship?

Answer 1

cross directorship represents a threat to efficient working of remuneration committees. a cross directorship is said to exist when two or more directions sit in the boards of other. in practice, it compromises some cross-shareholding which further compromises the independence of the directors. of of the directors is likely to be non executive director in most of the cases.

Answer 2

This is when an executive director of Company A serves as a NED in Company B and, at the same time,an executive director of Company B serves as a NED at Company A. Such a relationship is considered to make the two boards too intimately involved witheach other and potentially reduces the quality of the scrutiny that the two NEDs involved in the cross-directorship can bring.

(source: ACCA technical article by David Campbel)