Roundtable on creation of Independent Director Database

Roundtable for creation of database for Independent Director was organized by National Foundation for Corporate Governance (NFCG) on 22 June 2005. NFCG is set up by Ministry of Corporate Affairs in association with CII, Institute of Chartered Accountants and Institute of Company Secretaries of India.

The NFCG has asked the apex chambers and professional bodies to create a data base of Independent Directors on their web sites by 15th November 2005 to enable India Inc for meeting the SEBI deadline of 31 December 2005. From January 1, 2006 all listed companies have to comply revised clause 49 of SEBI.

Mrs. Komal Anand, Secretary, MCA said that there is need to create a database of such individuals, who would fulfill the criteria of becoming the Independent Directors.

Mr JS Malik, Jt Secretary, MCA pointed out that the concept of Independent director was here to stay. He estimated the total cost to India Inc will be Rs. 2000 crores but added that the value addition would significantly outstrip the costs. He said that there would be a requirement of 4000 Independent Directors for approx. 6000 companies.

Giving Industry perspective Mr.Adi Godrej said that there is a need for the harmonise the differences between SEBI and the recommendations by JJ Irani Committee on New Company Law.

To ensure that corporates are able to find qualified people, the CII is facilitating through its web site and invites structured CV of senior professionals in any discipline.

The roundtable is attended by members of various chambers of commerce and professional bodies and world bank.