Corporate Governance: Role of Independent Dir...

Corporate Governance: Role of Independent Directors

Author Name : Dr. Somnath Patil, Vishal Wadajkar

ABSTRACT

Independent directors are non executive directors on the board and ensure strong corporate governance. They do not have any monetary relationship with the firm so that they are always independent and act in the best interests of the firm. They should acquaint themselves with various aspects of the firm’s business so they can provide wise counsel. They need to attend all the board meeting and meetings of the committees of which they are members. They should ensure that their concerns regarding proposed actions are resolved by the board. If not, it should be mentioned in the minutes of the meetings. They should always act in the interest of the firm, its shareholders and its employees. Summarily, independent directors play a vital role in the corporate governance of the firm.

Keywords: independent directors, non executive, meetings, shareholders, corporate governance