About the service

ICGU carries out the test of Independence of serving Directors through their programs.

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ABOUT TEST OF INDEPENDENCE OF DIRECTORS

Key Aspects

A “test of independence” for board members refers to a process used to assess whether a board member has sufficient independence from the company’s management and other stakeholders, ensuring they can make unbiased decisions based solely on the best interests of the company, typically considering factors like their past employment history, business relationships, and family ties with the company.

This is undertaken through a consultancy in which development of criteria of test of independence is carried out.

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HOW WE CONDUCT TEST OF INDEPENDENCE OF DIRECTORS

Methodology

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Methodology involves development of questionnaire, administration of the questionnaire through interviews of the persons involved and issuance of recommendations for action

Frequently Asked Questions

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The test of independence assesses whether board members have sufficient independence from the company’s management and other stakeholders.
This is conducted through a structured consultancy process that includes developing evaluation criteria, administering a questionnaire, conducting interviews, and issuing recommendations based on the findings.

Board members, executives, and any other individuals whose roles or relationships with the company may affect their independence are eligible to be interviewed. This includes current and prospective directors, as well as key stakeholders with direct governance influence.

The methodology includes:

  • Development of a questionnaire based on established independence criteria.
  • Administration of the questionnaire through structured interviews with relevant individuals.
  • Assessment of responses to determine any conflicts of interest or dependencies.
  • Issuance of recommendations outlining necessary actions to enhance board independence.

Costs vary based on the scope of the assessment, the number of individuals interviewed, and the depth of analysis required. Factors such as consultancy fees, administrative expenses, and any additional assessments or legal reviews may contribute to the overall cost. A customized quotation is provided based on organizational needs.

The process takes 15 days

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Test of Independence of DIrectors Booking Form

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