Letter to BS: Independent directors are doing little to enhance reputation

The IDs have no clue about the working of the company, they never visit the factories, they never raise questions

This refers to the editorial “Governance questions” (November 23). The newspaper has raised a very pertinent issue — especially in the aftermath of recent fiascos at Infrastructure Leasing & Financial Services Ltd, Fortis, ICICI Bank and YES Bank.

It might sound like a sweeping statement but the fact is that barring a few, there are no independent directors (IDs) in India. Again, with the exception of few well-governed companies, board meetings, especially of a promoter-managed company, is mostly a social get-together with lot of bonhomie, back slapping, good food and drinks, sitting fee cheques, a decent gift and a very short,