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Board evaluation - Is the law misleading?

There is strength in the argument that inclusion of non-independent directors' views in board evaluation will distort the result

Asish K Bhattacharyya

Board self-appraisal, which includes appraisal of committees and individual directors, has evolved as an effective feedback mechanism for improving board effectiveness. Most Indian companies will carry out the exercise for the first time, as the Companies Act 2013 (Act) mandates board evaluation. The Act does not prescribe any specific method for evaluating the board. However, the provisions have been constructed in such a manner that compliance of the law to the letter might have significant dysfunctional effects. Board evaluation is an elaborate process. Pre-evaluation process involves ...