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10 Commandments for Independent Directors
By V V Ranganathan, Former Senior Partner at a Global Firm

It may be a matter of comfort to directors that the conviction levels in India is poor, compared to (say) the US. But the implications of Clause 49 for the board of directors are diverse and explicit, and directors have personal accountability for violations of the law.

The 10 commandments of risk management for directors:

1. Question whether it is a company that you really want to work with;

2. Question whether you have the equipment and knowledge to meet the expectations of the company and its regulators, without assuming disproportionate risks;

3. Demonstrate that you are independent, as stipulated by law;

4. Enquire whether the company has developed formal control and oversight procedures, and determine whether you can rely on them;

5. Resist unreasonable pressures and maintain objectivity;

6. Keep yourself up-to-date on the subject matters where you are expected to contribute to board deliberations;

7. Obtain copies of the Code of Conduct and ensure that you can abide by it;

8. If you are in doubt, always seek professional help from experts;

9. Always demand all board-related papers well in advance, to prepare for board meetings;

10. Keep all company-related information strictly confidential

Click here to see a podcast on 10 Commandments for Company Directors.

Source: http://vvranganathan.com/?p=9

How to be an ‘independent’ director?
By V V Ranganathan, Former Senior Partner at a Global Firm

A position as a director on a company’s board needs consideration of sundry aspects relating to the firm.If you are returning to this article, the second in the series, welcome back, else, please refer to the ten commandments of risk management for directors identified in my earlier article.

Now, let me deal with some of these risks and strategies for mitigating them. Let me dwell upon the first two rules. First, question whether it is a company that you really want to work with. Second, question whether you have the equipment and the knowledge to meet the expectations of the company and its regulators without assuming disproportionate risks. Let us take rules 1 and 2 together..... For more reading click here.

Source: http://vvranganathan.com/?p=41

Directors on tenterhooks
By V V Ranganathan, Former Senior Partner at a Global Firm

Life for a Company Director is rapidly changing. The new UK law makes it easy for shareholders to sue directors for a much wider range of deeds than were possible earlier. The Indian law could well take inspiration from this.

Given the spate of M&A activities in the recent past, many directors from India who are on the board of companies in the UK have to be careful to understand the implications of the new amendments which are in force from 1 October 2007.

Life for a company director is rapidly changing. The new sets of provisions in the latest UK Companies Act are bound to disrupt the life of directors. While the position in India is not as piquing, Indian courts are likely to be guided by the philosophies behind the new amendments in the UK in the absence of specific provisions under the Indian Companies Act 1956. Given the spate of M&A activities in the recent past, many directors from India who are on the board of companies in the UK have to be careful to understand the implications of the new amendments which have come in force from 1 October 2007.....For more reading click here.

Source: http://vvranganathan.com/?p=27