India Inc braces for major boardroom shake-up
As per primeinfobase.com, 1551 independent directors in 825 (out of total 2123) companies listed on NSE shall complete (minimum) a 10-year tenure by 1st April 2024.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Advanced Strategic Management ProgrammeVisitIndian School of BusinessISB Chief Digital OfficerVisitUniversity of Western AustraliaUWA Global MBAVisitIndian School of BusinessISB Chief Technology OfficerVisit"India Inc. will witness a huge dearth of good and experienced independent directors next year," said Berjis Desai, a veteran lawyer and director on several boards. «There are about two dozen professionals who can actually bring value to the table but hundreds of boards will require experienced independent directors and hence we may see a mega churn in several boards,» adds Desai, who is on the board of several companies including Great Eastern Shipping, Man Infraconstruction and Jubilant Foodworks among others.
Although there might be a significant number of director changes overall, individual companies are expected to handle only a few departures, typically ranging from 1 to 3 directors. According to experts, this transition is expected to usher in a younger generation and infuse new viewpoints into boardroom discussions.
«The change in guard usually brings in new and different perspectives into the boardrooms. Long tenures in boards do tend sometimes to cloud fresh thinking,» said Ketan Dalal, CEO, Katalyst, who sits on boards of Torrent Power, HDFC Life and Zensar Technologies.
In India, corporate founders commonly rely on family, friends, and extended social networks to carefully select people for their boards, and they have recently been making
