Jayant M Thakur: Do we need independent directors in India?

India

When promoters own over half a company's equity here, it is foolish to import solutions from countries where owners' share is below 10%.

Are independent directors really required and relevant in India? This relevant question surprisingly has come not from the industry or an academician but from our own minister for company affairs.

He was quoted recently to have said that, in the context of need of independent directors, companies are best run by promoters and shareholders.

Knowingly or otherwise, he has finally given fuel to a spark of insight that was raised many years ago by academicians and researchers but perhaps the dazzling names of Cadbury and others had suspended our thinking and we thought that what is good for the West should automatically be good for us.

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