Why independent directors are rushing for the exit door
Of the 743 independent directors who vacated their positions on boards of listed companies, 561 exited without adequate reasons before the end of their terms
Mumbai: Independent directors, the ‘protectors’ of minority shareholders’ rights, have been quick to jump ship at the slightest sign of trouble. The recent exit of three independent directors from Yes Bank Ltd—the chairman, and two from JM Financial Asset Reconstruction Company Ltd—is just the tip of the iceberg. It is not an uncommon practise for independent directors to quit before the end of their tenure, but what makes the situation interesting is the stark lack of credible reasons.