Governance questions

Independent directors are doing little to enhance their reputation

The infirmities embedded in the institution of the independent director in India Inc were highlighted dramatically over the past week with no less than three of them exiting YES Bank. Thus far, the bank’s independent directors had displayed a lax approach to governance that has characterised this institution across Indian companies, with IL&FS, Fortis and ICICI Bank offering examples over 2017 and 2018 alone. First came the exit of Ashok Chawla, the bank’s non-executive chair, and Vasanth Gujrati, the head of the board’s audit committee. These exits alone saw the stock price fall 14 per cent in two days. Five