Business Law
Social Darwinism

What is the weaknesses of cross directorship?

Top Answer
User Avatar
Wiki User
Answered 2007-09-05 12:34:03

In a typical cross-directorship situation, a director of company X becomes a director of company Y, and likewise a director of Y joins the Board of X. This sort of mutual arrangement can help to emphasise links between 2 companies, but may also lead to directors having conflicts of interest as they are naturally thinking about their other directorship (a linked company) instead of the company they are sitting in. If such arrangements are fully disclosed, the rest of the Board (and the shareholders) should be able to judge the director's actions, but cross-directorships still represent a danger and are not viewed in a positive light by most codes of corporate governance

User Avatar

Your Answer

Related Questions

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.

As CEO, Mary was part of the company's directorship.

We have seen many directorship . But none like syria and iraq.

A dissolved directorship means that a company has stopped trading. This is taken to mean that the company ceases to exist as a legal entity.

Not sure about any particular weaknesses, but, her Sorrows were: The prophecy of Simeon, The Flight into Egypt, The Loss Of the Christ Child in Jerusalem, Witnessing her Son Carrying His Cross, His Crucifixion, Seeing His Dead Body Being Taken down from the Cross, And His Burial.

He was offered a deputy directorship in the department of homeland security.

A person can hold directorship in 15 companies earlier it was 20 companies.

Political Weaknesses Economic Weaknesses Social Weaknesses

Your personal weaknesses.

my weaknesses is shopping online

Yes, vampires are just people who drink blood. That is their only difference from them and humans, they do not have any more strengths or weaknesses.

Contrary to modern representations, the Greeks and Romans believed their gods to be immortal and omnipotent. They didn't have weaknesses of power (e.g. Superman's kryptonite). They could do whatever they pleased so long as they didn't cross a higher ranking member of the Pantheon.

his weaknesses was studing.

Her weaknesses are falling for sailors.

Well people have different weaknesses so if you get to know them then you might know what there weaknesses are

Funeral parlors do not have inherent weaknesses.Funeral parlors do not have inherent weaknesses.Funeral parlors do not have inherent weaknesses.Funeral parlors do not have inherent weaknesses.

That depends on the church, on the directorship and on you. But how about:Thanks, and I hope I will do the job well, and perhaps a prayer.

what are the current weaknesses of mattel company?

Dictators don't have weaknesses.

What were the Continental Army's weaknesses?

Strengths and weaknesses of globes? What is it

Weaknesses in appraisal ? please advise

Copyright ยฉ 2021 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.