The Hindu Business Line : Independent directors

This refers to the article "Independent directors, key to corporate governance" (Business Line, July 21). It is inappropriate to dismiss as "most ridiculous" the argument of paucity of qualified and trained independent directors. Companies would justifiably want men with knowledge, experience and stature to occupy positions in their boards and those who are really independent. It would be difficult to get such men who have had experience of running divisions exposed to profits.

Citing cases of promoter families appointing their young scions to the board and senior positions are problems which the corporate world has to tackle but a rush to prescribe a liberal quantum of independent directors may tend to add a third set of worries for the companies and their apex business chambers.

It is dangerous to think of inducting, as independent directors, young men with high qualifications and a few weeks of training conducted by some `directors' institutes'. Even one or two independent directors can contribute to shaking the lethargy of a board. We do not need to fix a 50 per cent quota. It would be advisable to introduce the concept of independent directors in phases.

S. Subramanyan

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