Industry body Assocham has urged the Ministry of Company Affairs to form mandatory corporate governance norms, which will enable independent directors to have better access to audit information and confidential records of the concerned companies.
This will also allow independent directors to have a greater role in the company's decision-making, it said.
The chamber has recently submitted a letter to the Ministry of Company Affairs in this regard.
The current practice in Indian companies is that independent directors have limited role in decision-making of the company, since majority of them neither have access to confidential information nor records of the company, it said.
Therefore, they should be allowed to access information that would enable them to get an overview of the company, its products, present composition of board, its committees and significant development, Assocham said.
"This will help to bring in more accountability and transparency in the board's decisions," the chamber said.
Further, it said mandatory corporate social responsibility norms also need to be laid out in which it should be clarified that non-official directors have access to confidential and audit information of boards concerned.
Assocham President Swati Piramal said mandatory corporate governance guidelines need to be clearly spelt out so that they are same for all the firms.
The chamber also recommended that non-official directors need to be motivated to perform.
