Indian boards need to take their fiduciary duties more seriously

In recent months, the almost wholesale abdication of responsibility by corporate boards has given away India Inc's relative institutional immaturity

India Inc’s relative institutional immaturity is showing in the almost wholesale abdication of responsibility by corporate boards in recent months. The brewing crisis in Infrastructure Leasing & Financial Services (IL&FS), the conflict-of-interest issue involving the chief executive officer (CEO) in ICICI Bank, or the sprawling scandal involving Fortis Healthcare and the promoter family are symbolic of the abject weakness of the India corporate board. All of these examples raise concerns about the vigilance of board members, and, indeed, whether they take seriously their fiduciary responsibilities as clearly set out in Section 166 of the Companies Act, 2013. The truth that