IE 20.5.  Number of independent board members

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The independence of Board members is a crucial criterion for evaluating the objectivity and effectiveness of corporate governance. Within the ESG reporting framework, identifying the number of independent members of the Board of Directors or Supervisory Board is essential. This article guides you on how to determine and report this information.

1. How to answer this question ?

To answer accurately, follow these steps:

1. Determine independence criteria: Refer to the independence definitions established by your company, in line with market practices and legal requirements, to identify independent members.

2. List the independent members: Compile a list of Board members who do not hold any executive roles nor have special interests that could influence their judgment.

3. Report the number: Indicate the total number of independent members on the Board for the reporting year in question.

2. Why is this important ?

The presence of independent members is often associated with better governance, as it helps to reduce conflicts of interest and promotes balanced and objective decision-making. It is also a guarantee of transparency for shareholders and stakeholders.

3. Examples :

– Example A: A company with a 10-member Board has 7 independent members, indicating a high level of independence within the Board.

– Example B: Another company has an 8-member Board, but only 2 are independent, which may be seen as an opportunity to improve the independence of its governance.

The number of independent Board members is an indicator of a company’s ability to maintain balanced and unbiased governance. Reporting this number reflects a commitment to strong and responsible corporate governance.

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