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Business
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| Number of pages / Number of words: |
8 / 2240 |
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The purpose of this rule is to give the independent directors the opportunity to meet and not be influenced by management or anyone connected with the company; it gives them a better opportunity in a less persuasive environment to be more objective.
Rules number four and five relate to the nominating and corporate governance committees as well as the compensation committee...
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These rules state that the committees must be composed entirely of independent directors (NYSE, 8 & 9). These committees deal with nominating potential board members, oversight of company activities, and executive compensation, so in order to work effectively they must not be influenced by those with ties to the company or those directly affected by the decisions...
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