Business Standard

Will independent directors get their voice back?

The recent palace coup in Tata Sons has drawn attention to the role of independent directors

Imaging: Ajay Mohanty
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Imaging: Ajay Mohanty

Mohandas Pai
The recent palace coup in Tata Sons has drawn attention to the role of independent directors (IDs). Barring two directors who abstained, the rest of the board ousted the full-time chairman as they lost confidence in him suddenly. Company counsel stated that they were under no obligation to either state any reasons or allow him to defend himself or give adequate notice of their intention to do so. Of those who voted in favour, four directors were recent additions to the board, not having the vintage to do a proper study. Reportedly they were influenced by the Trustees of the

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