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The role of outside directors is one of the key features in the transatlantic corporate governance debate. As their importance rises, their liability is also attracting attention. Since there are only a few cases internationally in which outside directors of listed companies have been held...
Persistent link: https://www.econbiz.de/10013137966
We address two aspects of board dynamics — group-think and teamwork — that both arise from increased director overlap. Overlap captures the extent of common service by board directors. Greater overlap can lead to excessive cohesiveness of the group and thus group-think, where the desire for...
Persistent link: https://www.econbiz.de/10012828397
The general duties owed by directors to their companies are a critical element of company law overall, and corporate governance in particular. If these duties are breached the board, acting on behalf of the company, is empowered to decide whether to take action against the miscreant directors....
Persistent link: https://www.econbiz.de/10013088494
The Companies Act 71 of 2008 introduced into South African law a provision which for the first time permits the board of directors to remove another director from office in certain instances. This provision is contained in section 71(3). Compared to the equivalent provision in some leading...
Persistent link: https://www.econbiz.de/10012825028
The European Commission sees shareholder engagement as a cornerstone of the corporate governance model for listed companies. Shareholder engagement can to some extent be supported by legislation at national and EU levels. Some legislation is already in place, such as the Shareholders' Rights...
Persistent link: https://www.econbiz.de/10013043079
While reference to "fiduciary duties" (plural) is routinely employed in the United States as a convenient short-hand for a corporate director's duties of care and loyalty, other common-law countries generally treat loyalty as the sole "fiduciary duty." This contrast prompts some important...
Persistent link: https://www.econbiz.de/10014151449
The recent surge in the use of team-managed funds in the mutual fund industry suggests that the benefits of team … management might outweigh its costs. However, extant empirical evidence is not consistent with the view that team managed funds … generate superior returns relative to individual managed funds. We argue that the benefits of team management are likely to be …
Persistent link: https://www.econbiz.de/10013007572
I explore whether directors who resign in dissent from their board are rewarded in the labor market for directors. Using a hand collected sample of 278 boardroom disputes reported in 8-K filings during 1995-2006, I show that firms which have disputes are small, highly levered, have poor...
Persistent link: https://www.econbiz.de/10013133018
How do you build the best board for your organization? What attributes and skills are required by law and what mix of experiences and talents will give you the best corporate governance? What are the commonly required director attributes that are a must for each board and how do you customize...
Persistent link: https://www.econbiz.de/10013081519
This paper analyzes the characteristics of firms that declare board directors as independents, although the directors are not strictly independent, and examines the consequences in terms of performance and corporate governance outcomes. Based on publicly available information, eight criteria of...
Persistent link: https://www.econbiz.de/10013064529