DOI: https://doie.org/10.0608/nerj.2024725618
Shubham Shukla, Dr. Kunal Rohira, Shobhitabh Srivastava, Vishva Jeet Bhookar
Keywords:independent directors, corporate governance, corporate stakeholders, governance frameworks, regulatory policies
This research study investigates the concept of independence among independent directors in India and aims to provide insights into the effectiveness of their role in corporate governance. Independent directors play a crucial role in enhancing transparency, accountability, and fairness in corporate decision-making processes. However, concerns have been raised regarding their actual independence, as they may have personal or professional relationships that could compromise their impartiality. The research presents a comprehensive review of relevant existing frameworks, regulations, and guidelines governing the appointment and functioning of independent directors. Secondly, it provides the correlation between various factors, such as director remuneration, board diversity, board size, and the independence of independent directors. It presents an argument based on the current regulation policies in India with respect to Independent Directors that, they have constrained the powers of independent directors, with respect to control of shareholders and other board members. This is hindering the prime purpose of independent director’s institution i.e., to provide better governance for any corporate. The findings of this research contribute to the ongoing dialogue on corporate governance practices in India and provide insights for policymakers, regulators, and corporate stakeholders. The study aims to enhance the understanding of the challenges and opportunities associated with ensuring the independence of independent directors, thereby facilitating the development of effective governance frameworks and policies.