The Independent Director Cayman should not have any connection with the company he serves for. Furthermore, he shouldn't have any family members employed in the said company. Being an independent director gives you strong power to dominate other people in the company including the staff, managers, and executives. However, you should also be aware that you also have a lot of responsibilities as an independent director. You need to strongly adhere with your duties and responsibilities to maximize company profits.
Before the independent director comes up with a decision, he should first see advice on independent outsiders. If the independent director failed to do this, then he will be charged with negligence. However, the independent director should carefully choose his advisor and to make sure that the advisor is strongly qualified. The independent director has fiduciary duties to shareholders and to the company as a whole.
Factors to keep in mind
Independent Director Cayman that will not adhere to the rules and regulations of the Cayman Island will be held liable and a penalty will be imposed. Breach of duty is one of the common issues faced by independent director in Cayman. You should be aware of the fact that Cayman Island has a different breach of duties law than other foreign jurisdictions. In other words, the proceedings in Cayman Island will be entirely different from other foreign countries.
The independent directors have fiduciary obligations with the company they work with. They must be loyal, honest, and come up with an unbiased decision in the management of company's funds. The conflict of interest may arise if the director is a part of the company or an independent director has relatives or friends working for the company.
Furthermore, Cayman's independent directors should not accept company appointment unless the director is strongly knowledgeable and aware of the company's business endeavours. Aside from that, the director should also see to it that the overall company structure (financial structure) will be thoroughly discussed with the executives and company consultants.
If you are going to take a look at the job description of the independent director, you can clearly say that independent director has a very strong and powerful job, but there are also tons of responsibilities associated with it. He should be knowledgeable about the company's past and present endeavours. He should make sure that he is well aware of the company details including the regulatory requirements, company's book of records, and most especially the minutes of the past director's meetings. Conclusion The duties as well as the responsibilities of independent directors in Cayman are determined by the revised Cayman Island Companies Law and Common Law. A lot of people in the business arena want to become an independent director because of the power and strength it brings, but more than the power there are also tons of responsibilities and legal obligations. The independent director should perform his task in accordance with the predefined obligations. If you have the knowledge and skills, then you can certainly perform your job in an efficient and timely manner.