ISSN: 2222-6990
Open access
In today’s ever challenging corporate environment, the unfortunate events of decision making by top management has led major companies to suffer huge losses. This results and mistakes made have given a significant impact to the stake holder’s perception and raise a serious questions on the role of board of directors especially the role of independent directors. In today’s fast evolving business pace with stiff economic conditions, unethical and misjudgment in business decisions are driving the board’s role in corporate governance as an integral element. Hence, corporate governance can be defined as the way listed entities should be operating in accordance with legal framework, rules and regulations that underpin an institution so as to ensure strict compliance with law, sharing and balancing of powers between board of directors and stakeholders. As such, the board with a balance mixture of types of directors, where the independent directors predominate the board’s strategy formulation and implementation in the interest of governance is needed. This paper seeks to bring focus to the importance of the role of independent directors in ensuring that the organization runs its operations in the manner where stakeholders especially shareholders and corporate governance is a virtue.
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