Explore the critical difference between formal independence and genuine independent judgement in governance, and discover why true independence is essential for effective board oversight.
Independence is one of the most frequently declared qualities in governance.
Annual reports speak of independent directors, committees are said to be properly constituted, and board composition tables often assure stakeholders that the required balance has been achieved.
On paper, the board appears capable of objective oversight. Yet independence is most meaningful when it is tested.
A director may satisfy every formal requirement and still fail to exercise independent judgement.
