Why is it in the news?
The Ministry of Corporate Affairs has launched Independent Directors Databank.
- The Indian Institute for Corporate Affairs (IICA) will maintain the Databank portal.
Significance of Independent Directors Databank
- An accessible platform for the registration of existing and aspiring Independent Directors.
- It will provide a wide array of e-learning courses on various topics including the Companies Act, Securities laws, basic accountancy, board practices, board ethics etc.
Independent Outside Directors
- Independent outside directors are members of a firm's board of directors who are unaffiliated with the company itself.
- Independent outside directors can bring new insights and balance to a team.
- They do not have to worry about retaining their job within the company and can make their voices heard in a more objective manner.
Under the Companies Act, 2013, there are provisions that a company can choose an independent director from a data bank of persons who are eligible and willing to act as independent directors.