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Global executive search and consulting firm Heidrick & Struggles has found increased opportunity in India, especially in the areas of corporate governance and new independent directors post the passage of the new Companies Act.
Robert Knight, Regional Managing Partner for the Global CEO & Board of Directors practice, APAC, Heidrick & Struggles said that the firm aims to lead a new wave and bring a new perspective to defining the next generation of independent non-executive directors (INEDs) for India.
"The introduction of the new Indian Companies Act is expected to demand a new set of standards for INEDs, both in terms of the number of INEDs and their qualities," he said. He added that they had already begun helping companies in finding INEDs as per their needs.
The Indian Companies Act, 2013, that will replace the Companies Act, 1956, introduces some extensive changes, including those related to corporate restructuring and mergers and acquisitions, and will address key issues that are critical to good governance such as gender diversity and term limits.
The HR firm also held a Directors Forum in Mumbai on the issue of corporate governance and board effectiveness. Among the keynote speakers and panelists were Professor Andrew Kakabadse of Henley Business School, UK; Sridhar Gorthi, Partner, Trilegal; Robbie Knight, Regional Managing Partner for the Global CEO & Board of Directors practice, APAC, Heidrick & Struggles; and Indu Shahani, former Sheriff of Mumbai and Independent Director on multiple boards.
With respect to the desire to change, Prof Kakabadse said that the top leadership in companies may not always have an enthusiasm to change. He explained that while the general manager will implement the strategies, there is a need for constant support from the team and top management.
Apart from corporate governance, gender diversity was also discussed. Knight said that having more women at the C-suite and board level is a major concern for companies in India and the firm was discussing with companies the prospects of having more women in the workplace and its benefits.
“Globally, we pride ourselves on being our clients’ most trusted advisor, and offer an integrated suite of services to help manage their challenges and leadership assets, from acquiring talent through executive search to providing leadership counseling. We consider the new Companies Act our India launch pad, which we hope we can use to help corporations understand the changing landscape across different development sectors. Our objective is to support Indian companies in the evolving business environment and formulate strategies that are impactful and appropriate to their needs,” added Knight.
