After getting the Cabinet nod for re-introducing the Companies Bill, the corporate affairs ministry on Saturday said that the new Bill would be clearer about the role and accountability of independent directors on the board of companies.
?The new Bill will be more objective and will give a balanced approach to the role of independent directors and their accountability,? corporate affairs minister Salman Khurshid said at an event organized by industry chamber CII on Saturday.
The role of independent directors had come under much scrutiny after the Satyam debacle.
The new Bill, the minister said, is looking at the entire structure of responsibility of independent directors on the board of companies.
Besides, the Bill aims at protecting the independent directors so that they are not accused of the things they have not done.
?We are reassuring people (independent directors) that we are concerned and we will respond to their concerns if they are accused of doing what they are not doing,? Khurshid said. After the Satyam Computers fraud shot into limelight and the independent directors were questioned, many independent directors in other companies left their respective companies.
Khurshid on Saturday met various industry players to discuss major issues relating to the corporate sector such as the role of corporate governance, Companies Bill, role and responsibilities of independent directors and auditors.