EXAM FOR INDEPENDENT DIRECTORS
New Delhi, Sept. 2: The government plans to have examinations for individuals who want to become independent directors as part of bolstering the corporate governance framework, according to Union minister P.P. Chaudhary.
While there are stringent provisions under the Companies Act, 2013 to ensure good governance standards, the roles of independent directors has come under the scanner in certain instances of corporate misdoings. At a time when the government is making efforts to make its role minimal in the affairs of corporates, the role of independent directors is more vital.
Asserting that the government is committed to improve the fabric of corporate governance in the country, Mr Chaudhary said strengthening the role of independent directors in the affairs of companies is one of the steps in that direction.
The minister said that a person should have certain qualifications to become an independent director on the boards of companies.
New Delhi, Sept. 2: The government plans to have examinations for individuals who want to become independent directors as part of bolstering the corporate governance framework, according to Union minister P.P. Chaudhary.
While there are stringent provisions under the Companies Act, 2013 to ensure good governance standards, the roles of independent directors has come under the scanner in certain instances of corporate misdoings.
At a time when the government is making efforts to make its role minimal in the affairs of corporates, the role of independent directors is more vital.
Asserting that the government is committed to improve the fabric of corporate governance in the country, Mr Chaudhary said strengthening the role of independent directors in the affairs of companies is one of the steps in that direction.
The minister said that a person should have certain qualifications to become an independent director on the boards of companies.
“The requirement with respect to independent directors to have minimum reasonable qualifications and a certification course/ exam are also being considered,” he said.
He said the ministry is “very seriously” considering the proposal and stakeholders would be consulted before a final decision is taken.