881 Independent directors resigned from their positions in FY 23, as per Prime Infobase data

20 Apr 2023 , 11:23 AM

According to a Financial Express (FE) story that cited data from primeinfobase.com, nearly 881 Independent Directors (ID) left their company in the fiscal year 2022–2023.  14.5% more IDs resigned in the year than in the last year.

Both legal and regulatory duties must be met by IDs. They may raise objections and voice their disapproval of board decisions.

The report also stated that because auditors and IDs make up the first line of independent authority, their job has come under scrutiny. They are in charge of monitoring any misbehavior in a company.

According to experts, independent board members are required to declare their disapproval if they become aware of any wrongdoing. An ID may also be labeled as a defaulter in his or her own capacity if they fail to comply. He or she might be ruled unfit to hold any important positions as a result of this.

An independent director of Modulex Construction Technologies sent a 65-page resignation letter to the exchanges, the report said, noting corporate governance problems at the company as an example from a recent exit.

The Companies Act protects identification documents. Only those company actions for which they were aware, gave their assent or gave their approval can be held against them.

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