This refers to the article `Independent directors must serve on fewer boards' (Business Line, September 23).

The proposal put forward by Mr Pramod Bhasin, President & CEO, GECIS Global, that, "directors should interact with other senior management and staff in their chosen areas of interest to get a better understanding of the company" is fraught with the danger of running a parallel structure to the board. This might render CEOs somewhat ineffective creating, as it does, dual power centres. A similar proposition came up in the UK and received lukewarm response.

Such a decision goes against the principle that the non-executive member functions at the board level. This principle helps balance the views among the board members and in achieving cohesion.

Instances of suggestions of this kind abound and are often the result of an over enthusiastic and theoretical pursuit of good corporate governance practices.

S. Subramanyan

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(This article was published in the Business Line print edition dated September 29, 2005)
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