Question
Which of the following is NOT CORRECT about role of
Independent Directors? i.            They are expected to be independent from the management and act as the trustees of shareholders  ii.           They need to exercise adequate oversight on the management of the risk of fraud and non-compliance with existing regulations iii.          They need to ensure that payments are made timely to all suppliers and employees of the companySolution
Independent Directors (IDs) are the Directors in the Board of a company who are independent and free from any material business, day to-day operations or financial connection with the company. Clause 492 of the listing agreement which is applicable on all listed companies mandates the appointment of ID's on the Board. A need has been felt to update the Act and make it globally compliant and more meaningful in the context of investor protection and customer interest.
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