These questions are related to ASX Corporate Governance Council requirement for all listed companies to have a majority of "independent" board members.

1. What new agency conflicts would be created if director’s independence was compromise in regards to holding significant shareholdings in the company?

2. Statistic for Australian company's failure due to directors independecy comprosmised?

Answer rating: 100% (QA)

answer 1In the US directors often have a duty of loyalty toward the companys shareholders The idea of maximizing shareholder value came from Milton Friedman who proposed that executives and directors ... View the full answer