“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.
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.
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