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Ensuring True Independence: A Critical Examination Of Independent Directors In The Evolving

Ensuring True Independence: A Critical Examination Of Independent Directors In The Evolving Corporate Landscape




Krati Gupta, Bennett University

ABSTRACT

The purpose of appointing independent directors in a corporate governance strategy is to improve transparency, governance, and protect the interests of all stakeholders while preventing fraud. However, following high-profile corporate scandals such as the “Satyam Scandal, Tata-Mistry dispute, IL&FS fraud, and Jet Airways”, a number of independent directors resigned, leading to doubts about their effectiveness and influence within corporations. As a result, the genuine independence of independent directors has come under scrutiny, and their responsibility in the event of default or fraud remains ambiguous. This research study explores the concept of director independence critically in the light of today's dynamic business landscape. It investigates the changing expectations, problems, and implications of directors' independence, with the goal of providing a thorough knowledge of their position and efficacy in current business situations. This study intends to shed light on the intricacies of true independence among directors and its impact on corporate governance by an in- depth analysis of regulatory frameworks, case studies, and theoretical viewpoints. It will also examine the evolution of laws governing independent directors over time, as well as the impact of recent reforms enacted by the “Securities and Exchange Board of India” (hereafter referred to as "SEBI") to address important issues concerning independent directors.

Σχόλια


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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Licensing:

​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

Disclaimer:

The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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