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A currently debated issue in corporate governance is a requirement for boards to consist of a majority of independent directors.The Independent Director is a director of the board of directors who doesn’t have any kind of material or financial relationship with company or the related persons apart from sitting fees. Independent directors don’t have any proper share in the company. Some companies believe that the non executive directors are very different from the Independent Director in where the non-executive director are allowed to hold the shares of the company while the Independent Director are not allowed. The Companies act 2013 sets to see the provisions which are related to the independent directors over all by seeing the greater powers and their responsibilities in the governance of the company. There are no open provisions for being independent directors under the companies act and only the clause no 49 of the agreement has said for the induction of the independent directors and made it compulsory for the listed companies. So the ministry of the corporate affairs is carried out by the corresponding changes regarding provisions of the act which is an attempt to include all the requirements of having overall independent directors on the listed companies so as to have a check on the corporate powers. The independence of boards from the external influences this is very important and also proportional for the effective corporate governance. Thus we can say there is need for the strong legislation that are related to the independent directors and became very important and led to the performance of the act.
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