Independent Directors and the Prevailing Companies Act, 2013
With a view to ensure better corporate governance the Stock Exchange Listing Agreement requires the appointment of independent directors on the boards oflisted companies. Going further the Companies Act, 2013 has made it mandatory for companies to appoint independent directors and has also prescribed the requisite qualifications. This article explains the implications of the new provisions relating to independent directors.
Index Terms - Independent Director, Corporate Governance, New Companies Act 2013