What is the role of the “Senior Independent Director” in achieving good corporate governance?


Role of Senior Independent Director
1. The SID is the person who shareholders can approach if they have issues they wish to discuss but they wish to avoid talking to the Chairman. The most obvious example would be when they have concerns with the Chairman himself.


2. The SID can also be the person who board directors talk to when they have problems with the quality of the Chairman. If board members feel that their Chairman needs to be replaced, but the Chairman shows no sign of leaving, the SID is the person likely to lead the process of finding a replacement.


3. The SID should lead a meeting of the NEDs, at least once a year, to discuss the performance of the Chairman.


4. The SID should also attend meetings between the Chairman and shareholders to ensure they have a good understanding of shareholder views.


5. The SID should also chair the Nomination Committee when the Chairman is not present.