Lack of business knowledge

　　This can be the other side to the problem of lack of independence. Potential non-executive directors who have good knowledge of the business and industry may have gained that knowledge through links with the company in the past.

　　Lack of human resource management

　　Limited time may mean that non-executive directors do not have proper induction into the company, nor proper updating and refreshment of their skills and knowledge of the company. Their performance may not be appraised regularly; it should form part of an annual appraisal of the board’s activities.

　　Limited time

　　The most knowledgeable and effective non-executive directors are likely to have other significant demands on their time. As directors they have to fulfil certain legal requirements. Apart from their contributions to the main board, they will also probably spend time at meetings of board committees such as the audit and remuneration committees. The limited involvement resulting from the lack of time may limit their ability to contribute to board meetings since they are unable to obtain a broad enough picture of what is happening throughout the organization.