Separation of powers

Splitting posts of chairman and MD will improve governance

A section of corporate India has spoken out against the idea of separating the positions of chairman and managing director (MD) or chief executive officer (CEO), and appointing a non-executive director as chairman of the board. A report in The Indian Express quoted top businessmen and industry associations as saying that it was a needless reform at this time. The bone of contention is the Securities and Exchange Board of India’s (Sebi’s) order, making it mandatory for the top 500 listed entities to appoint a non-executive director as chairman by April 1 next year. Further, the chairman should not be