Tata Cos' geared up to meet ID norms
Tata Group companies to meet the deadline of December 31 of having independent directors in their respective company boards.
By PTI |
KOLKATA: The Tata Group companies are well geared to meet the deadline of December 31 of having independent directors in their respective company boards.
Market regulator Securities and Exchange Board of India (SEBI) had said all listed companies have to meet the new minimum independent director guideline by this December.
"Tata group is well placed regarding the independent directors. Also there is not a single company in the group where managing director and chairman is the same person," Tata Sons director J J Irani said.
Irani also said he was not in favour of appointing representative financial Institutions in company board as independent directors.
Speaking about the other companies Irani said, "Companies, which are serious, will have no problem in getting independent directors as per definition under the recommendation of our committee.''
The Irani committee, which has submitted its report to the Union law ministry and the ministry of company affairs, recommended that nominees of financial institutions cannot be regarded as independent directors on the board of a company.
The recommendations, which would be placed before Parliament for enactment of a new companies' act, said that appointing FI nominees as independent directors goes against the concept that an independent director will not have material or pecuniary interest in the company.
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