With the role of independent directors coming under the scanner after the Satyam scam, the Corporate Affairs Ministry on Tuesday said exact responsibility should be fixed on these directors by lending transparency to their job.
“They (independent directors) should give claims and disclaimer categorically in writing that they know what their job is. That responsibility could be fixed accordingly,” Corporate Affairs Minister Salman Khurshid said here.
Independent directors are appointed to company boards to ensure fair play in company affairs as they do not have vested interest in the company.
However, the multi-crore accounting scam in Satyam Computer, highlighted their role as mere figureheads and raised questions over their functioning.
Mr. Khurshid said the directors should also know their potential as to how many companies they can do justice to. He also added that the Companies Bill define independent directors, their roles and responsibilities.
