Number of co directorships should be restricted to 10: Irani
"My personal opinion is that the number of directorships that you can have is far too high. One has to decide how many Boards one can do justice to," the former chief of Tata Steel said.
By PTI |
MUMBAI: Terming as "far too high" the number of company directorships allowed to an independent director under Indian laws, Tata Sons Director Jamshed J Irani on Wednesday said Independent Directors need to decide as to how many Boards they can do justice to.
"My personal opinion is that the number of directorships that you can have is far too high. One has to decide how many Boards one can do justice to," the former chief of Tata Steel told reporters at a seminar here.
In India, at present, an Independent Director can be on the Boards of 15 companies.
Irani said he personally felt the law should allow for only 10 directorships.
"In some US companies, they don't have more than five directorships, not by law but by practice," he said.
The role of independent directors and audit firms has come under scanner after the Satyam scam, in which the IT company's founder Chairman B Ramalinga Raju mis-stated accounts to the tune of Rs 7,800 crore.
"Just now, you're allowed 15 (directorships) by the law and that is also in the companies listed on the stock exchange. There may be plenty of unlisted companies and those may not be counted," Irani said.
"My personal opinion is that the number of directorships that you can have is far too high. One has to decide how many Boards one can do justice to," the former chief of Tata Steel told reporters at a seminar here.
In India, at present, an Independent Director can be on the Boards of 15 companies.
Irani said he personally felt the law should allow for only 10 directorships.
"In some US companies, they don't have more than five directorships, not by law but by practice," he said.
The role of independent directors and audit firms has come under scanner after the Satyam scam, in which the IT company's founder Chairman B Ramalinga Raju mis-stated accounts to the tune of Rs 7,800 crore.
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"Just now, you're allowed 15 (directorships) by the law and that is also in the companies listed on the stock exchange. There may be plenty of unlisted companies and those may not be counted," Irani said.
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