Company Law emphasises on importance of independent directors

CHENNAI: The Company Law Act 2013 has a number of provisions on appointment of independent directors and there is a "growing importance" of their role and responsibility, a senior official of city-based cement manufacturer The India Cements Ltd said today.

"There is a growing importance of independent directors and their role and responsibility is emphasised under the listing agreement as per SEBI rules.

"But for the first time, the new Company Law 2013 has a number of provisions on appointment of independent directors," India Cements Ltd Senior President and Company Secretary, G Balakrishnan said at a conference on Corporate Governance organised by the Madras Chamber.

Noting there is no dearth of experienced and knowledgeable professionals in the country for appointment as independent directors, he said: "The moot question is availability of independent directors who will be unbiased, objective and dispassionate in his approach to the affairs of the company he is representing."

"We need to have a selfless mind set to take such independent directors on Board and they should also be objective and unbiased," he added.