Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
|
UK Code on SID |
A4 Provision- directors of large companies to nominate independent NED as SID who Shareholders can approach to discuss concerns if normal communication route broken down. |
|
|
What is the role of SID? |
-Sounding board for chair - Act as intermediary where other NEDs can express views / concerns which normal channels have failed to resolve |
|
|
FRC guidance on role of SID in normal times |
- act as sounding board for chair - help chair formulate new ideas - provide support for chair - carry out annual review of performance of chair with other NEDs |
|
|
FRC Guidance on role of SID in times of stress |
- Work with directors, shareholders and Chair to resolve problem - i.e when dispute between chair and CEO or when Shareholders/ NEDs have expressed concern not being addressed by chair. |
|
|
SID and chairman |
SID should support Chairman not oppose them. Good governance requires a united board |
|
|
Criticisms of SID |
- chairman should be able to resolve difficulties between comp and shareholders so position of SID not required - position of SID as extra line of communication is more likely to be divisive for Board rather than conciliatory |
