I N D E P E N D E N T DIRECTOR NORMS THROUGH CLAUSE 49
The Securities & Exchange Board of India ( SEBI) has proposed tough changes to the crucial clause 49 of the Listing Agreements in a bid to tighten corporate governance norms for listed companies. Sebi has proposed that :-
- Non-executive chairman not to be treated as independent director if he is a promoter.
- In such cases, the company would be required to have 50% independent directors on its board.
- Companies to disclose the relationship between independent directors and other directors. Proposed changes have been prompted by instances of promoters and relatives designating themselves non-executive chairman.