CONCEPTUALLY, NOBODY can deny the importance of independent directors for corporate governance. The Irani Committee recommendations have unwittingly lent some poignancy to the debate on independent directors. Whether their number should be half the strength of the board as mandated by SEBI or one-third as recommended by the Irani Committee seems to have caught the popular imagination. However, what seems to have been missed in this debate is the importance of independent directors. And whether the nascent institution of independent directors is to be given short shrift in the name of the emerging competition in Corporate India.
Corporate governance as a way of business life is yet to take roots in this country. It is unfortunate that corporate governance regulation has taken on a strict form without any commensurate conviction on the part of corporate leadership. This has led to corporate governance regulations being followed as a mere ritual. Added to this are the new competitive challenges facing the corporate leadership.
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