This refers to the editorial “Governance questions” (November 23). The newspaper has raised a very pertinent issue — especially in the aftermath of recent fiascos at Infrastructure Leasing & Financial Services Ltd, Fortis, ICICI Bank and YES Bank.
It might sound like a sweeping statement but the fact is that barring a few, there are no independent directors (IDs) in India. Again, with the exception of few well-governed companies, board meetings, especially of a promoter-managed company, is mostly a social get-together with lot of bonhomie, back slapping, good food and drinks, sitting fee cheques, a decent gift and a very short, presentation by the managing director or the chief financial officer followed by quick reading of the resolutions that are passed quickly. Meeting over, task accomplished, everyone is happy and business continues as usual.
The IDs have no clue about the working of the company, they never visit the factories, they never raise questions and have no role to play except hoping that everything is well.
Krishan Kalra Gurugram
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