IN TODAY’S DYNAMIC corporate landscape, the role of independent directors cannot be overstated. Boards require truly competent, knowledgeable, and unbiased individuals to navigate complex scenarios and safeguard the interests of stakeholders.
In Boards led by promoters, the appointment of an independent director as chairperson is essential for upholding principles of transparency, accountability, and effective governance.
This strategic move acts as a strong defence against potential conflicts of interest and ensures a fair decision-making environment. Enlightened promoters play a pivotal role by willingly relinquishing implicit rights and endorsing the appointment of an Independent Chairperson, underscoring their commitment to robust corporate governance.
With an independent director in the role of a chairperson, the Board gains a valuable perspective that goes beyond the promoter’s interests, fostering a culture of checks and balances. This independent oversight helps manage risks, boosts the Board’s credibility, and builds confidence among stakeholders. By placing an impartial figure at the helm, promoter-led Boards not only adhere to corporate governance standards but also showcase a commitment to cultivating a governance structure that is fair, responsible, and conducive to sustainable longterm growth.
The transition to having an independent chairperson can encounter resistance from promoters, as it may be perceived as encroaching on their traditional role within the corporate structure. For many promoters, the chairperson’s position symbolises a central authority and a direct link to the strategic direction of the company. The resistance is often grounded in concerns that separating the chairperson and managing director’s roles diminish their influence and control.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
All In On AI
India's IT industry has jumped on the AI and GenAl bandwagon in a big way helping enterprises across the globe use the technology profitably. But questions over the infra supporting Al-based innovation in the country remain.
Unleashing The Power Of Data In Digital Public Infrastructure
NPCI's PRAVEENA RAI on India's digital public infrastructure, leveraging data and improving financial literacy
CERTAINLY MORE THAN A MEMOIR
Gurcharan Das has been a story teller since his youth, pontificating in spells on a young nation free of socialist shackles racing to find its space in the sun, be it in India Unbound or India Grows at Night. An octogenarian now, he looks back at his own life, and in the process offers a more intimate and critical account of India since the partition
A CONTINUED COMMITMENT TOWARDS ENGINEERING EDUCATION
Don Bosco Institute of Technology (DBIT), as a part of Wayanamac Education Trust was established in 2001 on its sprawling 36 acres campus located at Kumbalagodu on Bangalore Mysore Highway.
HOW WE RANKED THEM
SOME OF THE leading engineering institutes of the country, especially first generation IITs, have established their reputation on the basis of their infrastructure, quality of faculty, research and development ethos, incubation centres, research publications and industry exposure.
NIT ROURKELA ADOPTS NEP, FOCUSES ON AI AND EMPLOYABILITY
In an exclusive conversation with BW Businessworld, K. UMAMAHESHWAR RAO, Director at NIT Rourkela highlights the current scenario of engineering and contributions by the institute to the industry.
“WE CONNECT TRADITIONAL METHODS WITH MODERN TECHNOLOGY"
VENKAPPAYYA R. DESAI, Director, IIT Dharwad shares the institution's vision to become the first Net Zero Water & Energy IIT
"WE FOSTER A CULTURE OF RISK-TAKING"
In a conversation with BW Businessworld, BUDARAJU SRINIVASA MURTY, Director, IIT Hyderabad, talks about the current approach of the institution to match the pace of academia and industry
"WE SUPPORT BUDDING STARTUPS"
MANINDRA AGRAWAL, Director, IIT Kanpur talks about how the institute's focus on entrepreneurship and cutting-edge research facilities creates a fertile ground for transformative ideas to flourish.
"WE WANT TO CREATE 100 STARTUPS A YEAR"
IIT Madras shows remarkable agility in altering its curriculum to address the country's needs. Director V. KAMAKOTI shares the objectives in detail.
