Online test for independent directors may be counterproductive, say experts

According to the National Stock Exchange database, there are over 5,500 individuals who hold 7,066 posts of independent directors.

Independent directors will soon have to return to the books to qualify for a seat on the board of companies. Come December, the government will start giving them an online proficiency self-assessment test meant to ensure better standards in the overall corporate governance.
 
However, experts feel the move may be counterproductive since it can shrink the already low pool of independent directors. “It might become an academic exercise just to tick a box. Many independent directors may not want to take a test,” Shriram Subramanian, managing director, InGovern Research Services, said.
 
According to the National Stock Exchange database,