Kratika Mandil, Department of Law, Savitribai Phule, Pune University
ABSTRACT
Independent directors have been playing an increasingly important role in the worldwide drive for better corporate governance. This increased boardroom presence has successfully acted as a precursor in the process of creating a fair balance between the interests of individuals, of society, and of the economy. In addition to this, it is widely acknowledged that their existence acts as a deterrent to fraudulent activity, bad management and inefficient use of resources, inequity, and a lack of responsibility. However, there has been much criticism of the performance of independent directors, who are not willing to raise their voices in opposition to the prevalent opinion.1 The regulatory framework that controls the liability of independent and non-executive directors in India has been examined, and the findings suggest that, while the existing system is founded on processes and technicalities, its execution falls short in several areas.
