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International NEDs: why are they important and what problems do they face?
A board of directors must have the necessary diversity and experience relevant to the company’s business. Financial knowledge is clearly important, but there’s another area which is often ignored: international experience and understanding.
An international chartered accountant can often be a very valuable member of the board, whether in the home country or abroad at a subsidiary or foreign investment.
International NEDs have specific responsibilities and can experience difficult situations found at international companies. Skills and expertise required of an international NED include an understanding of different cultures and the ability to communicate and comprehend the habits and attitudes of different countries. They should also be able to identify the risks in international political and geographical crises.