The appointment of Independent directors based on contacts and influence
need to be stopped. The qualifications for Independent Directors and
their role and Responsibilities need to be clearly Spelt out. Their
remuneration needs to be attractive and as far as possible linked to the
Contribution to Company's performance and not to the attendance
alone.Their reports after attending every meeting should form part of
the minutes of Board Meetings and the Committee's meetings where ever
they are members. There should be some system to evaluate the
performance of Independent Directors and this needs to be given adequate
weight age for continuance of the Directorship after the minimum
prescribed period. Contribution to Corporate Social Responsibility
should have special Consideration.
(This comment is in response to the Editorial Jobs at the top in Business standard dated 7/2/14).
1 comment:
In fact I suggested that each prospective director should give a 300 word write up of why he is wanting to come; what he would do; what he expects from the company in terms of its growth etc. This should serve as a guide for self assessment as also for a Board Review annually. Netherlands has this practice.
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