Sebi plans change in norms to trim promoters' sway on independent directors

Its proposed 'dual approval' system gives more powers to minority shareholders, without whose majority consent it will not be possible for companies to appoint or remove IDs

The Securities and Exchange Board of India (Sebi) on Monday proposed to overhaul norms pertaining to the appointment, removal and remuneration of independent directors, considered to be the flag-bearers of minority shareholders.

The market regulator suggested a “dual approval” process for the appointment and removal of independent directors. At present, an independent director can be appointed or removed by way of an ordinary resolution, where all shareholders, including promoters, are allowed to cast their vote. Going ahead, majority of the minority shareholders would also need to give approval. If either of the two approvals fails, the resolution to appoint or remove