Independent directors are crucial to good corporate governance, serving as the unbiased watchdogs of a company’s board. Unlike executive directors who manage the company daily, independent directors have no material or personal ties to the business. Their primary role is to provide an objective perspective, offering a crucial check on management and protecting the interests of shareholders and stakeholders. For companies listed on exchanges regulated by the Securities and Exchange Board of India (SEBI), the role of independent directors is particularly significant and is mandated by law. SEBI regulations require these listed companies to have a specific number of independent directors on their boards to enhance accountability and protect minority shareholders. These directors bring a wealth of diverse experience and expertise, which is invaluable in strategic planning, risk management, and ensuring transparency. They are instrumental in key committees like the audit, nomination, and compensation committees, ensuring decisions are made ethically and in the company’s best interest. Their presence fosters accountability and ethical conduct, helping build trust and long-term value
