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In recent times, resignation of Independent Directors from Company Boards have become a trend. In most cases, without providing a clear explanation. In cases where an explanation has been provided, the main reasons behind such resignations stem from poor corporate governance and a lack of transparency in board matters. Even when the authorities tightened up on corporate governance, there has been a pattern of independent directors quitting with a statement about their resignation related to corporate governance.
Our Views
- Since SEBI took the step of directing Independent Directors to make greater disclosures and adhere to corporate governance rules, IDs have started to publicly voice their disapproval on company boards on many occasions.
- SEBI has also introduced an amendment to SEBI LODR in October 2023 which states that the Independent Directors who are resigning should provide the detailed reason of the resignation. The aim is…
