ROLE OF INDEPENDENT DIRECTOR IN CORPORATE GOVERNANCE: A CRITICAL STUDY OF SEBI CONSULTATIVE PAPER

AUTHOR – RITIKA, PHD RESEARCH SCHOLAR AT UNIVERSITY OF JAMMU

BEST CITATION – RITIKA, ROLE OF INDEPENDENT DIRECTOR IN CORPORATE GOVERNANCE: A CRITICAL STUDY OF SEBI CONSULTATIVE PAPER, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 1365-1376, APIS – 3920 – 0001 & ISSN – 2583-2344

Abstract:

In India, the role of an Independent Director in corporate governance is crucial for maintaining accountability, transparency, and ethical practices within a company. Independent Directors are appointed to the board by shareholders of a company to provide an unbiased and objective perspective in decision-making and supervisory functions. Their principal responsibility is to protect the interests of all stakeholders, including shareholders, workmen and employees, consumers, and the public at large.

Since good corporate governance is the key to the growth of the companies and overall economic growth of India, the laws and policies related to rehauling corporate governance in India, introduced the role of independent directors (IDs) as a crucial factor in good governance of companies in India.

This paper studies the concepts of IDs and the role of IDs in the wake of achieving the good notion of corporate governance. This paper will thoroughly analyze the Consultation Paper on “Review of Regulatory Provisions Relevant to Independent Directors” and presents suggestive ideas for good corporate governance.

Keywords: Corporate Governance, Independent Directors, Corporate Regulations, SEBI