Sebi says a re-look is needed at the appointment and removal of independent directors in light of the ‘Tata imbroglio’. Now, the market watchdog is examining whether a special resolution, which needs 75% approval of those voting, is needed to remove independent directors from company boards. Current norms stipulate special resolutions only for appointing independent directors, while removing them requires only an ordinary resolution, which needs a simple majority. The regulator’s international advisory board made the same recommendation when it met on 14 January. “For board evaluation norms Sebi has to ensure that the norms are not over-reaching,” said Shriram Subramanian, founder and managing director of InGovern Research Services Pvt.

Source: Mint January 22, 2017 23:37 UTC