A course to enter company boards

If you are a chartered accountant, a solicitor, an advocate or a management consultant aspiring to a company directorship, this course is for you: the Bombay Chartered Accountants Society has launched Independent Directors' Study, a short-term course for those wanting to be independent directors on corporate boards.

With about 72 hours of study, the course provides an in-depth guideline on what to do in order to become an independent director, including conducting due-diligence on a company before accepting its directorship.

The first batch of such 25 trained professionals "" that includes chartered accountants, advocates, company secrtaries and management consultants "" received their certifications last Saturday.

B K Vatsaraj, partner, Vatsaraj & Co, a Mumbai-based chartered accountant firm, and the convenor of the course, said, "With clause 49 of the listing agreement becoming more important with regard to corporate governance "" and becoming on a par with the Sarbanes-Oxley Act "" there will be demand for such independent directors."

The aim of the course, which was launched by the Securities and Exchange Board of India chairman G N Bajpai last year, is to create a bank of such trained professionals who are better equipped to take up the responsibility.

Clause 49 of the listing agreement was recently amended with the Sebi saying that at least 50 per cent of the directors in a company should be independent where the chairman is executive and one-third should be independent where the chairman is non-executive.

The issue of corporate governance and the role of independent directors have gained focus following the "ownership issues" in the Reliance group.

The course by the Bombay Chartered Accountants Society briefs the candidates on corporate laws, rules, guidelines, ethics and study of balance sheets, while it also trains them on what kind of questions to ask at board meetings.

Vatsaraj said that at study sessions, real-life case studies are presented to the candidates who are then encouraged to react to it and make their recommendations.

Prominent corporate personalities such as Anil Singhvi of Gujarat Ambuja, Arun Gandhi, executive director, Tata Sons, and Keval Handa finance director, Pfizer, were invited to address the sessions.

The professionals are told not to accept directorships based on their personal equation with the top management of a company since such an entry could render them liable in case anything goes wrong with the company.

Independent directors can earn anything up to Rs 3-4 lakh per annum, while attending meetings fetches them anything between Rs 10,000 to Rs 30,000 per meeting.

The next course is expected to start in March this year.