Much has been discussed about corporate governance. The discussion has also touched points like independence of independent directors on the boards of corporates. The independent director might not be in a position to contribute as independently as he is expected to.
Mostly, the issues like professional attitude of boards and independence of independent directors are raised for the companies which are family-run. But such issues should not come up for professionals-run companies. The recent developments in the private sector banks are proper case studies for these two points. Both the Chanda Kochchar and Shikha Sharma cases show who enjoys more power, whether the board or a CEO. The boards of both the companies (not run by any family, but said to be professionally run) could not decide the fate of CEOs, without having CEO’s will/desire. These two cases are glaring examples of (a) how independent the independent directors are, and (b) how bold and professional the boards of companies are, and whether they can act swiftly if needed. If you want to look at the regulator on every matter, there is no need for a board of directors.
Bharat Thakkar Mumbai
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