Corporate governance: Looking back @2017

SC's direction has established that independent directors' job has become much more onerous than before

The focus of 2017 was on independent directors (IDs) and independence of the board of directors. The ministry of corporate affairs (MCA) disqualified at least 300,000 directors because their companies failed to file financial statements or annual returns for three years (2013-14 to 2015-16). And, in a case related to insolvency proceedings against Jaypee Infratech (JIL), a subsidiary of Jaiprakash Associates (JAL), the Supreme Court (SC) directed all the directors, including IDs, of JAL not to alienate their personal properties and to be personally present at every hearing. 

Both these have set a new norm of accountability of IDs. It was