| Nominees still appointed as independent directors |
| Mehul Shah / Mumbai September 29, 2011, 0:27 IST |
Some well-known Indian firms continue to classify nominees of institutional shareholders as independent directors on their board -- a practice opposed by the Institute of Company Secretaries of India (ICSI).
At present, Clause 49 of the Listing Agreement allows firms to classify nominee directors as independent directors. However, the new Companies Bill, is likely to be tabled in the coming (winter) session of Parliament, has proposed to disallow this practice, considered unfair to small shareholders. In the final draft of the new Bill, an independent director in relation to a company means a non-executive director of the company other than a nominee director.
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