Not a solution

A test will not ensure accountability of independent directors

Corporate governance has rarely been India’s strong point, and the recent past has reminded investors of this weakness with startling frequency. Especially noticeable is the failure of the checks and balances vested in the institution of the independent director. From Satyam, Kingfisher Airlines, ICICI Bank, Jet Airways, and IL&FS, independent directors have shown themselves to be ineffectual or somnolent witnesses to gross irregularities by promoters and managements. The government’s proposal to tackle this widespread failure of due diligence and ethics is unlikely to change things significantly. From December, it has decreed, the Indian Institute of Corporate Affairs will administer an