Q.3) How far has the provision of appointing independent directors to safeguard the interest of minority shareholders succeeded in its objectives? Suggest the changes to improve the challenges faced by the independent directors. (10 Marks)

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Swatantra

“Mentor’s Comments”

https://indianexpress.com/article/opinion/columns/tata-mistry-corporate-dispute-nusli-wadia-sebi-appointment-removal-of-independent-directors-7403380/
In the intro, give a brief introduction about the independent directors.
In the body, describe the objectives of appointing the independent directors on the board of listed companies, like safeguarding the minority shareholders, improving the corporate governance etc. In the next part, describe the issues such as appointment of ‘friendly’ independent directors by promoters due to their dominance in the appointment process, appointment of party affiliated persons by the government in public companies. In the suggestion mention adoption of the ‘dual approval’ system as proposed by SEBI in its consultation paper.
Conclude by mentioning the need for SEBI to adopt the dual approval system for appointment as well as removal of the independent directors.

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2 responses to “Q.3) How far has the provision of appointing independent directors to safeguard the interest of minority shareholders succeeded in its objectives? Suggest the changes to improve the challenges faced by the independent directors. (10 Marks)”

July 14, 2021

SUMITA DOWERAH

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1. July 31, 2021
  
  Swatantra
  
  Sumita
  
  Good attempt. Most of the points are covered.
  
  Introduction and objectives are fine. In issues, also mention that appointment of ‘friendly’ independent directors by promoters due to their dominance in the appointment process, appointment of party affiliated persons by the government in public companies is done, thus jeopardizing the concept of independent directors.
  
  Way forward and conclusion are good.
  
  Keep practicing. 🙂
  
  7.5/10