Why all directors should be shareholders in the company: the case against "independence"
McConvill, James and Bagaric, Mirko 2004, Why all directors should be shareholders in the company: the case against "independence", Bond law review, vol. 16, no. 2, pp. 40-65.
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Why all directors should be shareholders in the company: the case against "independence"
It is argued that the shift towards more 'independent' directors, in the wake of corporate collapses, is a fundamentally bad move, undermining the rights and powers of minority shareholders - entrenches a second-rate corporate governance model, separation of ownership and control, in company law - rather than suggest cosmetic reform in an attempt to address the problem, it is proposed that all directors must have significant interest in the company they serve - directors' self-interests and the best interests of the company become intertwined - this is a more effective way of tackling the problem of separation of ownership and control