The Role of Non‐Executive Directors in Cyprus Public Companies and their Subsidiaries

Corporate governance practices in Cyprus, despite the shortcomings of the relevant legislation, will continue to evolve to meet changing conditions and increased shareholder awareness but certainly do vary and will persist to vary with those of other nations and cultures. Gradually, it is being accepted that the main corporate objective is enhancing shareholder value, which not only indicates superior competitive performance, but also generally requires awareness to the expectations and aspirations of other stakeholders. Wider transparency and independent supervision of management by boards of directors are the central elements of improved corporate governance but board practices should be subject to unforced adaptation and evolution in an environment of globally understood and accepted minimum standards. There is no single universal model of corporate governance, which could be transplanted nor is there a static final structure which could be easily adopted. The country will have to develop a system of corporate governance which will fit its respective culture and values. Therefore, we can learn a great deal from observing developments in other countries and encourage experimentation and variety.