The Companies Act, 2013 has ushered in a new era of self-governance as compared to government control under the Companies Act, 1956. The introduction of KMP’s, independent directors and woman directors are aimed at ushering worthy professionals at management level. Earlier, while the listing agreement mandated the board of listed companies to include independent directors, neither the Listing Agreement nor the 1956 Act precisely defined the duties, roles, and liabilities of an independent director. The Companies Act, 2013 on the other hand, attempts to crystallize the role of independent directors with an aim to ensure higher standards of independence. To be in line with the new act recently in February 2014, SEBI overhauled the corporate governance norms for listed companies to bring them in line with the Companies Act, 2013 which includes provisions related to Independent Directors.
Detailed provisions relating to Independent Directors under Companies Act 2013: