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Mandated Divorce - Company Boards, Independence and Performance

To read Peter Swan's article please CLICK HERE.


Peter Swan's analysis updates the earlier article on independent directors published by ASA in June 2014 Equity. Shareholders have for centuries had the power to change directors by voting against re-election of directors and for the sort of candidates Peter's evidence proves would deliver better performance and rewards to long term investors.

Shareholders have not made such changes because of an entrenched practice of unethical incumbent directors. They put their self interests before their duties to shareholders and make "unanimous" recommendations that shareholders vote for re-elections of existing directors.

This is explained in an article published by me after two years of consultations and case studies. Since May the latest draft has been sent to ASA, AICD and other publishers plus company secretaries for comment. Interested ASA members can get a copy of the article by emailing