New Delhi, June 15
SEVENTY per cent of the country's top Chief Executive Officers and Managing Directors want the Securities and Exchange Board of India to extend the Clause 49 deadline by at least six months as it is difficult to put in place independent directors by December 31, according to the Associated Chambers of Commerce and Industry Survey of 200 CEOs and MDs.
Most of the CEOs and MDs agree more with the JJ Irani Committee recommendation of having one-third of the board members as independent directors (IDs) than the SEBI guidelines that require 50 per cent of the board to be represented by IDs.
According to the Listing Agreement, IDs should comprise 50 per cent of the board strength if the Chairman is an Executive Director and one-third if he is a non-Executive Director.
On the rise in the cost of compliance, 80 per cent of the respondents said they will have to incur extra costs by up to 40 per cent, while 18 per cent said there will be no increase in cost of compliance.