What Exactly Is an Independent Director?

Harvard Law School Forum on Corporate Governance

Shana A. Elberg Lisa Laukitis Maxim Mayer-Cesiano

Partners Shana Elberg, Lisa Laukitis and Maxim Mayer-Cesiano look at "director independence," which means different things for different purposes and situations. When directors’ actions are challenged, courts often consider personal and business ties that might suggest divided loyalties.