Finolutions

The Real Role of an Independent Director Boards rarely fail because every person around the table lacks intelligence.  More often, they fail because intelligent people accept the same assumptions, rely on the same presentation and avoid the one question that could disturb the apparent consensus.  That is where an Independent Director is expected to matter. Companies frequently appoint Independent Directors because the law requires it, an investor asks for it, an IPO is approaching or the organisation wants recognised names on its board.  These may be valid triggers, but compliance is only the starting point.  A board gains value only when independence changes the quality of its decisions. Some of these observations also come from lessons I gathered during my own stint as an Independent Director.  That experience reinforced a simple truth: independence is tested not when everyone agrees, but when an uncomfortable question needs to be asked. India has built a larg...