ROLE AND IMPORTANCE OF INDEPENDENT DIRECTORS: CURRENT SCENARIO UNDER COMPANIES ACT, 2013
By Karan Bansal, Symbiosis Law School, Pune
Gauri Sharma Symbiosis Law School, Hyderabad
The Concept of Independent Directors developed as an instrument to continue encouragement and security of Corporate Governance. Nearness of an outer and autonomous expert to screen and oversee the outside and inner working of a Company is viewed as a need as Large Companies are never again insignificant Private Organizations, and they influence a few people straightforwardly and by implication, as well as economies of Countries over the globe. Their essence is worldwide and can’t be denied. The event of overall embarrassments including Companies, for example, Satyam Computer Services, WorldCom, Qwest, and Andersen, which prompted misfortunes being borne by a few investors, at the expense of individual gain of best dimension administrative and official workforce plainly demonstrate that the requirement for further advancement of the Concept of Independent Directors is grave. Thus, the authors shall discuss the provisions associated with independent director under the Companies Act, 2013 to highlight its importance.
Key Words: Corporate Governance, Company, Executive Personnel, Independent Directors, Top Level Managerial.