Back To Books For Independent Directors

It is widely considered that independent directors on the board of a company would improve corporate governance, especially given the responsibility of the board to balance various interests. The reason for such belief stems from the opinion that the directors representing specific interests would be confined to the perspective dictated by those interests, whereas, an independent director could bring an element of objectivity to the decision making process of the board with regards to the general interests of the company and also protect minority shareholders¹. The appointment of these independent directors are governed by the relevant sections and schedule of the Companies Act, 2013 ("Act") read with the Companies Appointment and Qualification of Directors)Rules, 2014 ("Rules").