There is no dearth of talent; yet, corporates have been slow in complying with Clause 49 for more than a year now. The reasons are varied.
Clause 49 of the Listing Agreement obliges listed companies to re-organise their board composition to ensure safeguards for independent decision-making by companies. The deadline for this compliance is December 31.
The Clause, covering one aspect of corporate governance, requires that with effect from January 1, 2006, at least 50 per cent of the board should be composed of independent directors, where the chairman is an executive. If he is not, at least one-third of the board should be with independent directors.
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