Pallavi Shroff refuses second term as independent director at Asian Paints

Pallavi Shroff, the Managing Partner of Shardul Amarchand Mangaldas & Co, has refused to continue as an independent director on the board of Asian Paints for the second term.

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“This is to inform that Pallavi Shroff has informed the Board of Directors that she will not be able to continue for a second term of appointment as an Independent Director of the Company, on account of several new projects that her firm has undertaken leading to enhanced professional and time commitments,” said Asian Paints in a statement.

She has also confirmed that there are no other material reasons for her non-continuation, it added.

Pallavi Shroff, Managing Partner, Shardul Amarchand Mangaldas | Photo Credit: KAMAL NARANG

Following this, the company the proposal seeking shareholders approval through postal ballot for her reappointment stands cancelled, said the company.

The term of appointment of Shroff as an Independent Director of the company will conclude on March 31, said the company.

Earlier, corporate governance research and advisory firm InGovern had raised concerns over Shroff’s reappointment. It said that as a best practice there should not be any links between independent directors and the company. InGovern said that Shroff is the managing partner of law firm Shardul Amarchand Mangaldas from which Asian Pants takes professional services.

“Asian Paints claims to be high on corporate governance. Yet, it is embarrassing when an independnat director resigns when her election is ongoing. It is clear that she cannot be considered truly Independent. Investors are asserting their voting rights. High time companies recognised this,” InGovern said in a tweet.