Evolution of independent directors in India: A boon for corporate governance

Corporations are the back bone of the society. They provide employment and help in generation of capital and ultimately lead to the betterment and enhancement of economy. For better management of the corporation's the area of Corporate Governance has been developed, which recognizes and follows the principles of accountability, responsibility, efficiency and transparency, to achieve these objectives a monitoring mechanism was developed, i.e., the concept of Independent Director. The Independent Director is not just a term or concept but a well groomed institution for Supervision, Scrutiny and better management of Corporates and its members, as the Independent Directors are unbiased in decision making and governing the organization. This article presents a clear picture about the importance, evolution and development of the concept of Independent Director. It also provides information about the status of the Independent Directors in USA and UK and attempt has been made to trace its evolutional journey in India. The work points out the difference between the particulars of the subject under SEBI and under the Indian Companies Act 2013.