Complacent companies have suddenly realised that Clause 49 relating to corporate governance is not, as often happened in the past, going to be given yet another extension. By December 31, 2005, they will have to be in compliance, and nearly 15,000 new independent directors will have to join the boards of listed companies to actively participate in them. This realisation must be so stressful that one pharma company has actually promoted medicine giving the impending Clause 49 deadline as an example of the stress company promoters currently face.
First-time directors will particularly need to know their role, their powers, their obligations and their liabilities.
It is pointed out that independent directors cannot really be independent. The independent directors are supposed to keep a check on the promoters. But these directors would be appointed by the promoters, removed by them and remunerated by them.
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