Master Class on "Board Effectiveness and Independent Directors"
IICA and ICSI organized a Master Class on “Board Effectiveness and Independent Directors” on April 18, 2020. The Master Class aimed at orienting the Independent Directors and corporate governance professionals, the concept of effectiveness of the board, and the role of Independent Directors in enhancing effectiveness. The master class also oriented the participants with the key advantages, the databank offers, in enhancing the skills of Independent Directors for their effectiveness.
The Master Class started with the Inaugural address of CS Suresh Pandey, Chairman NIRC – ICSI. He briefed the participants about the coverage of the webinar and focused on the role of Independent Directors in balancing the interest of a varied group of stakeholders by drawing references from ‘Ramayana’. While articulating the reference, he further emphasized the advisory role of Independent Directors on the board.
Moving forward, CA Anil Sharma, one of the key speakers of the webinar, briefed the participants with the key concepts of corporate governance, the board of directors, and the role of Independent Directors. He emphasized that the quality of the Board is judged by the quality of its directors who contribute to the success of the board in governing the company with sustainable growth and resilience. He further elaborated on the concepts by discussing various aspects of conceptual and practice-based framework relating to board effectiveness and achieving greater returns as a result of the effective board practice.
A need was emphasized to engage with the following issues by exploring and learning further:
- How to improve Corporate Governance
- How more effective board structures be developed and used
- How efficient system of internal controls with adequate checks and balances be brought to practice
In an address to the Master Class, Dr. Niraj Gupta, IICA explained that the central purpose of a corporation is to effectively engage with its activities in a manner that could add value and maximize the benefit of all stakeholders. In present times it is required that every corporation should revisit its core purpose and to develop means to enhance the stakeholder value. While addressing to the role of Independent Directors in adding effectiveness to the role of a corporation, he urged upon them to focus on practicing three key principles :
- Commitment for balancing the interest of stakeholders
- Courage to stay independent and focused on the role with a high level of ethics, integrity, and objectivity
- Enhancing professionals' skills and capabilities for the discharge of their roles and responsibilities.
