Business Standard

Letter to BS: An in-depth study of role of outside directors is needed

We need to educate the promoters on how to involve them even if they have divergent views

Image
Premium

Business Standard New Delhi
Apropos “Promoting good governance” (June 28); the authors have rightly emphasised on moving away from compliance or survival requirements. The most difficult part in ensuring corporate governance, in my experience, has been the role of outside directors on the board. Of course, they are hand-picked by the main promoter. But the proceedings in the board are essentially in accordance with the promoter’s wishes — to endorse than to suggest. If there are any views that run on different paths, they are generally to be mentioned during informal meetings outside the board. 

The outside director is mainly expected to collect the fees

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 28 2018 | 9:40 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com