The role of independent directors is clearly defined, yet many of them feel they play a cameo role in a company, often failing to red flag fraudulent activity and serious governance lapses that eventually compromise minority shareholders' interests
No promoter or company management would ever deny corporate governance is the cornerstone of an organisation—big, medium, small, public or private. But, in reality, corporate governance is one of the most neglected corners in the overarching framework of ethics and transparency across most firms. Of all the stakeholders, very often, it is the minority shareholders who pay most dearly for this lapse.
Herein lies the role of independent directors who are entrusted with the responsibility of being the eyes and ears of investors as they are expected to balance the interests of the management and its shareholders in letter and in spirit. In recent years, unfortunately, there have been several glaring instances where the board of directors has evidently failed to do so.