Role of independent directors should be fixed: Khurshid
Press Trust of India / New Delhi Nov 17, 2009, 14:07 IST
With the role of independent directors coming under scanner post-Satyam scam, the Corporate Affairs Ministry today said exact responsibility should be fixed on these directors by lending transparency to their job.
"They (independent directors) should give claims and disclaimer categorically in writing that they know what their job is. That responsibility could be fixed accordingly," Corporate Affairs Minister Salman Khurshid said here.
Independent directors are appointed to company boards to ensure fair play in company affairs as they do not have vested interest in the company.
However, the multi-crore accounting scam in Satyam Computer, highlighted their role as mere figureheads and raised questions over their functioning. Khurshid said the director should also know their potential as to how many companies they can do justice to.
He said, the Companies Bill define independent directors, their role and responsibility.
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With the role of independent directors coming under scanner post-Satyam scam, the Corporate Affairs Ministry today said exact responsibility should be fixed on these directors by lending transparency to their job.
