Corporate Governance codes independence concept is narrow:

8.6: The independence concept in corporate governance codes?

The independence concept in corporate governance codes is a set of rules and guidelines that are
designed to ensure that directors can act in the best interests of the company and its shareholders.
The independence concept is based on the idea that directors should be free from any conflicts of
interest.

Why is the independence concept in corporate governance codes narrow?

The independence concept in corporate governance codes is often seen as narrow because it is
based on a narrow definition of independence. This definition typically focuses on financial
relationships, and directors are often allowed to have significant business ties to the company.

True independence?

True independence is a broader concept that takes into account other factors, such as personal
relationships, business ties, and even political affiliations. It is also important to consider the
director's mindset and whether they can think critically and independently about the company's
business.

Why is true independence important?

True independence is important because it helps to ensure that directors can act in the best interests
of the company and its shareholders. When directors are truly independent, they are more likely to
challenge the executive team and make decisions that are in the best interests of the company, even
if those decisions are unpopular or difficult.
8.7: Laed Nonexecutives Reports

The lead non-executive (LNE) report is a report that is published annually by the lead non-
executive director of a company. The report is intended to provide shareholders and other
stakeholders with an independent assessment of the company's board of directors and its
governance practices.

1. The board's composition and independence: The LNE report will typically discuss the
composition of the board of directors, including the number and qualifications of the directors, as
well as the board's independence. The LNE report will also discuss the board's policies and
procedures for ensuring its independence.

2. The board's effectiveness: The LNE report will typically discuss the board's effectiveness in
carrying out its duties and responsibilities. This may include a discussion of the board's frequency
of meetings, the quality of its discussions, and the effectiveness of its decision-making process.

3. The board's risk management framework: The LNE report will typically discuss the board's
risk management framework, including the board's process for identifying, assessing, and
managing risks. The LNE report may also discuss the board's policies and procedures for
responding to risk events.

4. The board's performance in overseeing the company's strategy and financial

performance: The LNE report will typically discuss the board's performance in overseeing the
company's strategy and financial performance. This may include a discussion of the board's role
in developing and approving the company's strategy, as well as the board's oversight of the
company's financial performance.

5. The board's approach to corporate governance and social responsibility: The LNE report
will typically discuss the board's approach to corporate governance and social responsibility. This
may include a discussion of the board's policies and procedures for ensuring ethical business
conduct and compliance with all applicable laws and regulations. The LNE report may also discuss
the board's approach to social responsibility and sustainability.

Conclusion
The LNE report is an important document for shareholders to read as it can help them to
understand the board of directors and how it is overseeing the company. The LNE report
can also help shareholders to identify any potential concerns about the board or the
company's governance practices.