Thursday, June 3, 2010

Independent Director

Listed company have many of independent directors. No one know were they have any ablities? That is waste company paid some fees to them. Some more quota tell us should follow specific guideline to appoint them. It is brings company in dangerous with inablities.

So, if one of the independent director in the directors' meeting, keep on telling executive directors stop doing illegal transaction. The result brings him in the next AGM will not be re appoint by major shareholders who normally is that executie director. Hence, independent directors usually keep silent on all trasaction in the company although they are knowing some bad things inside the company. That is bad culture in most of the listed company.

So, one company having a big loan with bank by inadequate business, normally the interest payable easily highlighted in the statement as well as in the cash book of company. SC and Bursa should imposed a new law to bind public listed company, "If one company failed paying minimum interest on certain loan. Bankers or lender compulsory own a right to make a statement/announcement in bursa. That will force some executive directors hold a responsible to report to BOD's members and indirectly bring independent directors must have certain responsible on that. Otherwise independent directors always like a toys and in function all the time in the company. Not like now, all of them used the best excuse is "I do not aware!!!!" and easily avoid all responsible.

If one day, rule allow minority interest appoint new independent director in to company. That is best because he will not worry any reappointment subject to one or two person's wish. Because minority will happy he/she carry the watch dog job to look after company's interest. So, we hope SC should change rule and law to allow 10% minimum stakeholders have right to appoint 2 or three independent directors in every public listed company and major shareholders rights on such agenda of appointment of independent directors should recorded as "void and zero". So, although fees of directors maybe higher than normal but that is valueable.

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