The Confederation of Indian Industry (CII) has recommended that in order to ensure quality independent directors on company boards, there is a need to provide immunity to them. Since independent directors are not involved in the day-to-day management of the company, their liabilities should be distinguished and made less onerous than liabilities of the executive and non-independent directors, said a CII statement. The industry chamber also said that the requirement of independent directors, constitution of audit committee, definition of independent director, promoter and key managerial personnel under the Companies Bill, 2008, which is before a parliamentary standing committee, should be aligned with the listing agreement and other Securities and Exchange Board of India (Sebi) legislation. The much-awaited Companies Bill, 2008, which intends to modernise and bring in a single legal framework for regulating internal governance of companies from the time of incorporation to liquidation was tabled in the Lok Sabha in October.
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