Independent Directors in Indian Companies

Abstract

For the first time ever, the Companies Act and SEBI, have Recognised the importance of independent directors and Have clearly defined the criteria for designating such a Director as a board member. Over the last four decades, corporate boardrooms in many developed and developing countries including India, have witnessed a remarkable growth in the power of independent directors. Regulatory reforms have been passed not only to make sure that boards have adequate number of independent directors but also to provide them a structure to make it possible for them to monitor corporate affairs more effectively.