Regulatory Framework – Liability of Independent Directors
Independent directors are individuals appointed to the board of directors of a company who are not part of the management team and do not have any material pecuniary relationships with the company. They are appointed to provide an independent perspective to the board of directors and to ensure that the interests of all stakeholders are taken into account. Regulatory Framework Governing Liability of Independent Directors Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 [SEBI LODR]: Regulation 25(5) of SEBI LODR states as follows, “An independent director shall be held liable, only [...]