Number of NEDS

[nana_asamoah]

What is the total number of NED's required in a corporate set up.

[okwen foma]

half of the board should be NED.

[Acid]

half of the board should be NED.


Thanks for this extremely useful information ;)

[victoria mensah]

What is the total number of NED's required in a corporate set up.
It is a relative measure, thus, no precise number can be given.

Under SOX requirements-more than half of the Board(majority of the Board).

Singapore Code: at least 1/3 of the Board must be NEDs.

In UK (Cadbury report):the NEDs must be of sufficient character and number in order to carry their views strongly.

[okwen foma]

thanks for the detail answer .is it necessary for one to know what is in the uk combine code , sox and other governance code.

[nana_asamoah]

Very necessary. There have been one or two past questions on that.

But to enable you channel your answer properly know that

SOX - sarbanes oxley is for the US,
The Combined Code is for the UK.

I want brief explanation of each.

waiting for a reply, thanks.

[okwen foma]

sox is the rule base approach to cg ,as a result of collapse of big companies like enron ,tyko etc.this is use by all public companies in us and their subsidiaries.this led to the creation of public oversight board,cpa firms not providing audit service and consultancy service .criminal offense if cfo and ceo do not comply etc .its a one size fits all approach ,causing the us to loose a lot of capita investment.but increases public confidence .whlie the combine code is a principle base approach in companies either comply or explain to the code .the code is enforce by the stock exchange .it more a flexible approach and small companies can move away from the onerous documentation of items required by the code.

[nana_asamoah]

So what are the contents of SOX.

[SalmanSheikh]

What is the total number of NED's required in a corporate set up.

There should be a balance of Exectives and Non Exectives Directors in a Board....
where there is NO Balance then atleast three NED's should be appointed and for smaller companies there is atleast two NED's on a Board. In order to run a company in appropriate manners.