EXPLORING THE LEGAL DYNAMICS: STRICT LIABILITY VS. DUE DILIGENCE DEFENSE FOR INDEPENDENT DIRECTORS UNDER THE COMPANIES ACT, 2013

AUTHOR – ARYAN BHARDWAJ, STUDENT AT UNIVERSITY OF PETROLEUM AND ENERGY STUDIES, DEHRADUN.

BEST CITATION – ARYAN BHARDWAJ, EXPLORING THE LEGAL DYNAMICS: STRICT LIABILITY VS. DUE DILIGENCE DEFENSE FOR INDEPENDENT DIRECTORS UNDER THE COMPANIES ACT, 2013, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (1) OF 2025, PG. 393-399, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

This paper explores the interplay between strict liability and due diligence defense for independent directors under the Companies Act, 2013 in India. It examines the legal framework, compares it to international standards, and analyzes landmark cases to understand the challenges and opportunities this framework presents. The paper concludes by proposing solutions to enhance clarity, promote boardroom dynamics, and improve director training and regulatory guidance.