A company is the congregation of various stakeholders such as customers, employees, investors, shareholders etc. It should be fair and transparent to its stakeholders in all its transactions. This has become imperative in today’s globalised business world where companies increasingly access global pools of capital, attract and retain the best human capital from various parts of the world, look to partner and collaborate with global vendors and strive to live in harmony with the community. Unless a company embraces and demonstrates ethical conduct, it will not be able to succeed and sustain in the long run.

In India, until recently the companies tend to fill corporate boards with representatives of the promoters leading to board members collectively taking decisions based on a set of principles influenced by the values, context and culture of the organisation. This has posed great difficulties in the functioning of the company and often tends to contradict the principles of corporate governance. Thanks to the various statutory and regulatory prescriptions, the boardroom environment is slowly but surely witnessing a change. Ensuring the presence of independent directors with the right knowledge, skills and experience on the Board can go a long way in upholding the corporate governance principles.

An independent director bridges the gap between the management and its shareholders. They not only promote the principles of corporate governance by facilitating disclosures, transparency and accountability of the company to its stakeholders but also help the company in inculcating the best corporate governance practices. Independent directors make sure that the company is functioning in a way keeping in mind the best interest of its customers, shareholders, employees, its own interest, and the interest of the public at large.

Having the right mix of Independent Directors with the requisite knowledge, qualifications and experience on the Board is highly important if the companies of today are going to thrive and excel into the future. Times have changed and an Independent Director on a board is not just seen as a figurehead who sits on the board only to gain prestige and have a supervisory role. In today’s world, being amongst the board of directors means abandoning the passive role of yesteryears and being personally engaged, taking responsibility and grooming the company’s leadership team. Companies today require Independent Directors to be approachable and take on the demands of their position with full responsibility and dedication in order to make a positive impact on the company and on society at large.

At Beyond Compliance, we can be trusted to consult and advise companies both big and small on sourcing the right independent directors for their board succession planning and helping the board improve its performance. Our collaborative process doesn’t end once we help the companies decide which Independent Director to appoint. We follow through to ensure that every detail is completed to satisfaction. Our comprehensive process extends from the initial information exchange to the final negotiations and ongoing follow-up.