Volume : I, Issue : VII, December - 2012

Independent Directors - Special Reference of Corporate Governance and Indian Banking

Akhil Goyal

Abstract :

The origin of independent directors should be discussed from the ownership of company vis––vis Management. The Board is a group of individuals appointed by the owners of the company to run the company in the interest of the stake holders. A company is a combination of various stake holders such as investors, employees, vendors, customers, governments and society at large. The management of the daily affairs of the company is given to the Board of Directors. The concept of independent directors arose when the regulators all over the world felt the need for checking the insider game among the members of board of directors. It was assumed that they would usher in an era of transparency in the management of corporations. While it has been found true to a great extent, a set of scams, fraudulent practices that dented the image of big corporations tend to undermine the basic meaning of the nature of functioning of independent directors. The Satyam fiasco in which the independent directors were supposed to be torch bearers of corporate governance where found under an embarrassing situation and had to step down under disgrace , put a question mark in the Indian scenario. Instances of auditors of yesteryears being appointed as independent directors, the same individual being in the post for several years – in these two situations can the individuals come real independence in discharging the functions for which they are meant to. The move by Government of India to put a liability clause on the independent directors has put on spot light the question of freedom given by the corporate houses management.

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Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

PROSPECTIVE ANALYSIS OF OUTCOMES OF OPERATED SUBAXIAL CERVICAL SPINE INJURIES, Rahul Kumar Singh, Chhewang Topgia, Abhishek Pandey GLOBAL JOURNAL FOR RESEARCH ANALYSIS : Volume-9 | Issue-7 | July-2020


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