Independent directors as pillars of good governance

Corporate governance has taken centre stage in India due to the extent and propensity of risks in the present business environment and the case for enhanced governance mechanisms being echoed from regulators and stakeholders alike. In this scenario, it is imperative for businesses to reconsider their governance mechanisms and not treat the subject as merely a check-in-the-box exercise. The agenda of ethics, compliance and crisis management requires boards to act swiftly, and independent directors play an integral part in the process.

In this report, we discuss the role of independent directors in enhancing the overall corporate governance at an organisation as well as the expectations from them as pillars of good governance. The report also recommends ways by which organisations can potentially strengthen the institution of independent directors.