answersLogoWhite

0

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

Wiki User

18y ago

What else can I help you with?

Related Questions

What is cross directorship?

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.


What is directorship?

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.


What is cross-directorship?

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.


What is a sentence for directorship?

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


How do you use directorship in a sentence?

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


What is dissolved directorship?

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.


How do you cancel a directorship?

Tell them to go away


The purpose of cross examination in a debate is to?

clarify fuzzy areas and probe weaknesses


When Athens were defeated by Macedonia its government changed to a democracy or directorship?

it was changed to democracy


How many companies a person can be a director in?

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


What are demeters weanesses?

Demeter's Weaknesses: Not one to cross lightly. After the kidnapping of her daughter Persephone, Demeter blights the earth and won't let the plants grow.


What will I say when I accept a new director's position with my church?

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.