New Cos Bill to be more clear on role of independent directors

The government today said that a new companies bill to be introduced in the country will be clearer about the role and accountability of independent directors on the board of companies.     

The role of independent directors had come under much scrutiny after the Satyam debacle.     

"It (new Companies Bill) will be more objective, it will give a balanced approach to both the role of independent directors and their accountability. The attempt is to make it more unambiguous and explicit," Corporate Affairs Minister Salman Khurshid said at a function organised by CII in the national capital.     

The new bill, he added, is looking at the entire structure of responsibility of independent directors on the board of companies.     

Besides, the bill aims at protecting the independent directors so that they are not accused of the things they have not done.     

"We are reassuring people (independent directors) that we are concerned and we will respond to their concerns if they are accused of doing what they are not doing," Khurshid said.