The Hindu Business Line : Independent directors

The suggestion by Mr Bhasin, that "directors should interact with other senior management and staff in their chosen areas of interest to get a better understanding of the company," is fraught with the danger of the creation of a parallel structure to the board.

This might render the CEOs somewhat ineffective as it creates dual power centres. It is against accepted principles to have a non-executive member function at the board level.

This principle helps iron out the views among the board members and helps achieve its cohesion.

Suggestions such as the current one may be well-meant but seem to reflect an over-enthusiastic and theoretical pursuit of good corporate governance practices.

S. Subramanyan

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