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Independent directors: bill for one-third quota

NEW DELHI: The Union Government is in the process of legislating one-third directors to be independent, Ministry of Company Affairs Secretary Komal Anand said here on Thursday at a corporate governance seminar organised by the National Foundation for Corporate Governance and the Confederation of Indian Industry. Ms. Anand said the law would be binding for listed and unlisted companies.

The Ministry of Company Affairs is now giving a final shape to the revised Companies Bill to be introduced in Parliament in April that envisaged one-third independent directors in a company's board, Ms. Anand said.

The MCA had sought the views from all stakeholders, including the Securities and Exchange Board of India.

SEBI's Clause 49 of the Listing Agreement mandates that a company's board should consist of 50 per cent independent directors if the chairman is executive and 33 per cent if non-executive.

PTI

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