I'm just talking about the expectations. Writing the rule is not the difficult part. Enforcing them is because it's extra effort and expense and it leads to losing some business. Shareholders are more than happy to support a company's ethics until they stand in the way of profit.
Finding an appropriate n might be a delicate, many big (legitimate) businesses have really complicated ownership structures. Then you have to task someone with validating all of this. Whose expense is it to do the due diligence and check everything? WHo takes responsibility for failures in this regard? And finally it will mean some business is lost on both sides and it might be a lot of money.
Banks have anti money laundering policies yet still find ways to go around them all the time because they want the business. Banking secrecy wasn't there to protect privacy but to obscure shady activities. As I said, it's good to have the rule and I'm not against it but I have the feeling people have some unrealistic expectations from this. They just raise the bar a bit and filter out the "chaff" while still allowing larger interests to prevail.
> Finding an appropriate n might be a delicate, many big (legitimate) businesses have really complicated ownership structures
It is something between 10 and 13, if you accept that governance structure of an organisation must match its social communication structure. It is something between 14 and 16, if you accept that governance structure of an organisation must match its business divisions. Any n>16 is prone to communication shortcutting.
Finding an appropriate n might be a delicate, many big (legitimate) businesses have really complicated ownership structures. Then you have to task someone with validating all of this. Whose expense is it to do the due diligence and check everything? WHo takes responsibility for failures in this regard? And finally it will mean some business is lost on both sides and it might be a lot of money.
Banks have anti money laundering policies yet still find ways to go around them all the time because they want the business. Banking secrecy wasn't there to protect privacy but to obscure shady activities. As I said, it's good to have the rule and I'm not against it but I have the feeling people have some unrealistic expectations from this. They just raise the bar a bit and filter out the "chaff" while still allowing larger interests to prevail.