Spurt for search of new Independent Directors
As the current fiscal year marks the end of the maximum ten-year term for many non-executive directors, mandates for independent director searches have more than doubled, according to leading executive search and leadership advisory firms. The Companies Act, 2013 provides for two consecutive terms of 5 years each in respect of appointment of Independent Directors. Hence, Independent Directors who appointed after 2013 provisions and continued for second term, would be leaving their office in coming days. This fiscal year is set to be an action-filled period for director posts as top search companies are also witnessing a doubling of the number of independent directors reaching out to them looking to build a new portfolio of company boards. Demand for independent directors will increase during this year due to the upcoming cliff. Companies are applying a strategic lens to board composition and asking for directors with experience in digitization, sustainability, etc. According to data collated by primeinfobase.com, terms of 2,024 independent directors are expiring by the end of December 2024. The directors are from 961 firms listed on the National Stock Exchange.
