Will Sebi guidance improve board evaluation?

Ornamental boards do not have an urge to improve performance, says the author

The Companies Act, 2013, and the Securities and Exchange Board of India’s (Sebi’s) Listing Obligation and Disclosure Requirements Regulation, 2015, mandate board evaluation, which is the evaluation of the functioning of the board of directors (hereafter board), evaluation of the chairman, individual directors and the board process. The Companies Act requires that every listed company and every other public company having a paid-up share capital of Rs 25 crore or more at the end of the preceding financial year shall include in the report a statement indicating the manner in which annual board evaluation has been made.

Board evaluation is