Auditors are not the only ones calling it quits. With increasing instances of high-profile corporate frauds, accounting discrepancies and application of global anti-corruption laws, independent directors are finding the going tough.
More than 1,000 independent directors (IDs) have quit since January last year, data from Prime Database show. That number is likely to go up substantially in 2019 when a number of IDs’ terms are reviewed for renewal. More than 1,400 IDs had signed up for five-year terms in FY15 after the Companies Act, 2013, came into force from April 1, 2014.
“Many of these IDs may opt not to extend their tenure, given the increase in compliance requirements and greater accountability,” said Shriram Subramanian, founder and managing director, InGovern Research Services.
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