“INDEPENDENT DIRECTOR - KMP TO CORPORATE GOVERNANCE'
- can't remain in 'cosy club': stated by Sh. Injeti Srinivas
The corporate affairs ministry, known as Corporate Governance Agency, is implementing the companies law, has taken various measures, in order to have high-quality people fit to act as Independent Director.
• MCA has developed a strong cadre of independent directors with aim to promote Corporate Governance. Independent Directors should not be part of a "cosy club" as they are key to corporate governance.
• MCA is also having a separate registry for independent directors in order to have high-quality people in that position.
Corporate Affairs Secretary, Mr. Injeti Srinivas has given following comments:
• Independent directors are coming under the scanner in connection with various corporate misdoings.
• An independent director is the kingpin of the wheel of corporate governance and have a lot of responsibilities, which the person needs to discharge
• All the recent initiatives taken for having a separate registry for independent directors, mandatory test, continuous learning... are aimed at developing high quality independent directors
• Certain categories of individuals, including those who have served for at least ten years as director or key managerial personnel in a company, are not required to take the test.
• Around 20,000 registrations of Independent Directors have taken place under the new framework.
• Around 14,000 people have paid the fees and have become members.
• Applications can be made for inclusion in the data bank for one year, five years or life time.
Conclusion: Ministry of Corporate Affairs (MCA21) is very much Concerned about Corporate Governance Norms and trying to set up E - Governance model with an aim to facilitate world class governance of corporates.