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Pratip Kar: How to evaluate company boards

The new Companies Act provisions on the performance evaluation of boards need to be unambiguous and their implementation realistic if compliance is to be expected

Pratip Kar

Compliance with the new provisions of the Companies Act 2013 (the Act) and its battery of Rules have kept the boards of companies, as well as their managements, lawyers, and 'external experts', frenetically busy for the last couple of months. One of the many provisions of the Act which has set the cat among the pigeons is the "performance evaluation" of boards and directors. The Indian corporate sector, which had long resisted its introduction, fruitlessly hoped for an evangelist to appear in the last hour and postpone its implementation, saying "India is not ready for ...