New Delhi - The government plans to have examinations for individuals who want to become independent directors as part of bolstering the corporate governance framework, according to Union minister P.P. Chaudhary.
While there are stringent provisions under the Companies Act, 2013 to ensure good governance standards, the roles of independent directors has come under the scanner in certain instances of corporate misdoings.
Asserting that the government is committed to improve the fabric of corporate governance in the country, Chaudhary said strengthening the role of independent directors in the affairs of companies is one of the steps in that direction.
The minister of state for corporate affairs said a person should have certain qualifications to become an independent director on the boards of companies.
“The requirement with respect to independent directors to have minimum reasonable qualifications and a certification course/ exam is also being considered,” Chaudhary said.
He said the ministry is “very seriously” considering the proposal and stakeholders would be consulted before a final decision is taken, he added.
The minister also made it clear that the proposal is to have examination for individuals who want to become independent directors and not for existing people who already have independent directorship.
“With respect to existing independent directors, there could be orientation programmes,” he added.
Independent directors have both advisory and monitoring role in the context of governance practices at the companies.