independent-directors-databank

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.