International Business/Non Executive and Independent Directors.
Can both Non Executive and Independent Directors play an active
role during mergers and acquisitions ?.
Company A (Parent, Acquirer, Merger-er) , Company B (Secondary, Acquired, Merged).
Case 1 :
Company A and Company B both have Non Executive and Independent Directors.
Case 2 :
Company A has Non Executive and Independent Directors,
Company B do not have Non Executive and Independent Directors.
Case 3 :
Company A do not have Non Executive and Independent Directors, Company B have Non Executive and Independent Directors.
Awaiting your reply,
Thanks & Regards,
Prashant S Akerkar
Dear Prashant -
My apologies for this tardy reply.
As always, fact patterns are dependent on the details.
To give a precise reply, you will need to explain what jurisdiction applies, i.e., where are these companies incorporated and where is the m&a event taking place? Laws of the governing jurisdiction will determine issues like this.
You have asked general questions - so, in general, no, non-executive and independent directors do not play an active role during m&a events. It is precisely their "non-executive" and "independent" functions that make them less or not at all "active."
Again, the specifics of your transaction will determine the answer - if you'd like a more specific answer, please provide more details, especially those pertaining to which jurisdiction governs.
Thanks much for your question!