Long tenure of chairman impacts board independence
Long-serving chairmen have the last word in decisions, say experts; firms say decisions are taken unanimously
Mumbai: Larsen and Toubro Ltd, Housing Development Finance Corp. Ltd (HDFC), and ITC Ltd are the bluest of Indian blue chips. They are also among the few Indian companies that have no clear promoter entity and are run by professionally managed boards. There is another similarity between the three—each has a long serving chairman who has become synonymous with the company, a fact that has invited criticism from several corporate governance experts.