Proficiency of independent directors: an Indian corporate governance perspective
International Journal of Organizational Analysis
ISSN: 1934-8835
Article publication date: 15 January 2024
Abstract
Purpose
Independent directors (IDs) in India are required to qualify for the online proficiency self-assessment test to acquire or retain their position on the corporate boards. The purpose of this paper was to examine the perceived positive and negative aspects of the new mandate for the overall quality of corporate boards in India.
Design/methodology/approach
This study used a qualitative methodology and applied the interpretative phenomenological analysis approach. Data was collected from board members using semi-structured interviews.
Findings
This study revealed the positive and negative perceived aspects of the mandatory policy prescription of proficiency test for IDs. It was found that the participants emphasized training and mentoring programs for the IDs.
Practical implications
Drawing upon the actual board experiences of the participants, this study has the potential to assist policymakers in making regulations that are more effective in enhancing the quality of corporate boards. The example of action taken as well as the criticism or positive aspects pointed out can generate interest in other legislators.
Originality/value
The concept of proficiency test for IDs is unique to India. A review of literature did not reveal the existence of any regulatory provisions for a mandatory uniform test for examining the proficiency of IDs, in any corporate law jurisdiction apart from India.
Keywords
Acknowledgements
Declaration: This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.
Citation
Vig, S. (2024), "Proficiency of independent directors: an Indian corporate governance perspective", International Journal of Organizational Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOA-08-2023-3894
Publisher
:Emerald Publishing Limited
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