Board Structures in different countries

There are different type of Board Structures in different countries. Some have a two tier board one at more executive level and another at more governance and strategy level. In India the concept is of a “unitary board” which is similar to what is also in UK. Cadbury committee had pioneered some International Standards about board effectiveness. These standards include
1. Having right mix of executive and non-executive directors and independent directors that work under a Chairman
2. The role of Chairman is an important role and by principle it should be separate from the role of Chief Executive. Where the Chairman is also the Chief Executive there will
be too much concentration of power and therefore it is important the board has strong independent directors
3. At least three non-executive directors should be on the board and at least two of these should be independent  Impact of bad governance of corporations is not only
limited to the corporation itself but also significantly impacts other stakeholders.

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