The role of the Independent Director.
What is an Independent Director?
Required by lenders in certain financial transactions, an Independent Director is required to serve on the board of single purpose vehicle (SPV’s) to protect assets in large real estate or financial transactions.
According to the NASDAQ Marketplace Rule 4200(a)(15), the definition of “Independent Director” means a person other than an executive officer or employee of the company or any other individual having a relationship which, in the opinion of the issuer’s board of directors, would interfere with the exercise of independent judgement in carrying out the responsibilities of a director.
What does an Independent Director do?
An independent director is a director or member of a board of directors who does not have a material or monetary relationship with the company or related persons. The Independent Director is not a part of the management team with their sole role being to vote on the matter of a voluntary bankruptcy of the special-purpose vehicle (SPV).
Trusted Experience is the Independent Director Difference
When you have a closing, we will be ready for you with an Independent Director. These are also known as Springing or Special Members for Special Purpose Entities. Our trained and experienced Independent Director understand the nature of your transaction.
Our representatives act as independent manager and springing members serving borrowers, depositors, trusts, general partners, lessors, and issuers and understanding complex organizations structures including multi-tiered, mezzanine, sub-mezzanine, preferred equity and single member structures.
When an independent director or independent manager is required, a knowledgeable and seasoned individual with firsthand involvement is crucial. An experienced Independent Director must be familiar and knowledgeable with the fiduciary duties of an insolvent company, or one entering the zone of insolvency.
Our Independent Director clients receive benefit from industry expert insights, shaped and powered by hard-earned, in-the trenches experience.
When your transaction or closing requires an Independent Director, you need it quickly and with no fuss. Here’s how we do it:
One – Call or email us with details of your transaction and the Special Purpose Entity’s (SPE) organizational structure.
Two – Send us the SPE’s organizational documents–typically an operating agreement or partnership agreement. We’ll send you our staffing agreement for signature along with our invoice to be paid at closing.
Three – Closing documents are signed, scanned, and sent overnight to you if required.
We can help.
Should the need arise for an Independent Director, contact us and we will work with you on the perfect fit for your project. Speak with an Independent Director specialist to learn more.
Welcome to a better service experience.