Independent Directors watchpersons of Corporate entities: Minister

Speed Post News Network

New Delhi : Union Minister of State for Ministry of Law, Justice and Corporate Affairs P P Chaudhary on January 11, 2018, said that Independent Directors are watchpersons of Corporate entities. The MOS (Law, Justice and Corporate Affairs) Chaudhary was delivering the inaugural address at the two-day orientation programme for newly appointed Independent Directors of Public Sector Banks (PSBs) and Public Sector Undertakings (PSUs) on  the campus of Indian Institute of Corporate Affairs (IICA) at Manesar in District Gurugram (Haryana).

Addressing the newly appointed Independent Directors of PSBs and PSUs, Chaudhary said, “It is high time to conduct such orientation programmes for Independent Directors (IDs) on a regular basis on various provisions, eventually leading to better accountability. The role of IICA is huge due to the large economic infrastructure in the country.” He said that IDs impart balanced view along with transparency and credibility. The two most important functions of IDs are in advisory and monitoring capacity. They are systemically crucial in monitoring internal financial controls, he added, according to a PIB release.

Chaudhary appreciated the spirit behind organising the conference aimed at capacity development of Independent Directors since they play a crucial advisory role to ensure integrity and professional conduct in companies. Referring to the Section 150 of the Indian Companies Act, 2013, he shared the Central Government is seriously considering to develop a data base of Independent Directors at IICA.

Gopal Krishan Agrawal, Member, Board of Governors, IICA, said that Independent Directors bring their experience of diverse fields to a company’s Board. However, appropriate knowledge and skills through such Capacity Development Programmes are vital. What is important is that the IDs have to set-up policy and systems.