INDEPENDENT DIRECTOR can't remain in 'cosy club': stated by Sh. Injeti Srinivas

“Independent director –  KMP to corporate governance”

-          can't remain in 'cosy club': stated by Sh. Injeti Srinivas

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The corporate affairs ministry, known as Corporate Governance Agency, is implementing the companies law, has taken various measures, in order to have high-quality people fit to act as Independent Director.

 

·         MCA has developed a strong cadre of independent directors with aim to promote Corporate Governance. Independent Directors should not be part of a "cosy club" as they are key to corporate governance.

·         MCA is also having a separate registry for independent directors in order to have high-quality people in that position.

Corporate Affairs Secretary, Mr. Injeti Srinivas has given following comments:

·         Independent directors are coming under the scanner in connection with various corporate misdoings.

·         an independent director is the kingpin of the wheel of corporate governance and have a lot of responsibilities, which the person needs to discharge

·         All the recent initiatives taken for having a separate registry for independent directors, mandatory test, continuous learning... are aimed at developing high quality independent directors

·         Certain categories of individuals, including those who have served for at least ten years as director or key managerial personnel in a company, are not required to take the test.

·         Around 20,000 registrations of Independent Directors have taken place under the new framework.

·         Around 14,000 people have paid the fees and have become members.

·         Applications can be made for inclusion in the data bank for one year, five years or life time.

Conclusion:

Ministry of Corporate Affairs (MCA21) is very much Concerned about Corporate Governance Norms and trying to set up E - Governance model with an aim to facilitate world class governance of corporates.

Source:

https://economictimes.indiatimes.com/news/economy/policy/independent-director-kingpin-of-corp-governance-cant-remain-in-cosy-club-injeti-srinivas/articleshow/75081390.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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