Director independence in India under new companies act, 2013

Director independence highlights independent behaviour of the board as a whole. The idea of an independent board is very appealing the world over. However, director independence is challenged in various occasion in India in recent times. Therefore, the Government of India by introducing new Companies Act, 2013 clearly explains the meaning, role, responsibilities and position of an independent director. It is presume that the new provisions are expected to bring clarity on the role and responsibilities of independent directors in view of better corporate governance; and will induce them to act assiduously besides enforcing accountability of independent directors. This paper elucidates major changes under new act in the context of director independence.