M Damodaran, former chair of the Securities and Exchange Board of India, on Wednesday launched a trust that aims to address challenges faced by non-executive directors, especially independent directors on companies’ boards.
The institution, Non-Executive Directors in Conversation (NEDICT) will promote discussions among non-executive directors through different chapters in Mumbai, Delhi, Chennai, Kolkata and Bengaluru.
Other members of the trust include managing partner Anup S Shah, Infosys’ former global head of human resources Hema Ravichander, Mukund Chitale, Pradeep Dinodia, Idea Cellular’s former MD Sanjeev Aga, and TN Manoharan.
Lack of role clarity, increasing liabilities under the new companies Act, absence of domain knowledge are among concerns facing non-executive directors, Damodaran said.
“In a number of interactions with non-executive directors, it was clearly felt that the large number of diverse responsibilities, which they were expected to discharge, had left them unprepared to do justice to the their role,” said Damodaran who will act as managing partner of NEDICT.