Legal safeguards for independent directors vital to attract top talent

CII has suggested that proceedings against IDs may be initiated only once there is prima facie evidence of their possible involvement in the matter, rather than as a matter of course

All listed companies should provide legal and procedural safeguards to independent directors against criminal liability to attract more talent to the boards, the Confederation of Indian Industry (CII) has recommended in a set of guidelines released on Monday.

In the guidelines on the appointment of independent directors and the process of board evaluation, the industry association has suggested indemnity or insurance formalised through appropriate written agreements for their protection.

CII has suggested that proceedings against independent directors may be initiated only once there is prima facie evidence of their possible involvement in the matter, rather than as a matter of