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From left: Patrick Dupuis and Patrick J Ennis, the two independent directors of Wipro. Image credit: Twitter, courtesy of Wipro.
Synopsis
An ambiguous provision in the company law that requires shareholder approval for the reappointment of independent directors has led to divergent practices among listed companies. Though the IT major has asked Stakeholder Empowerment Services to withdraw its voting recommendation to shareholders, the proxy advisor has chosen to stand its ground.
Earlier this year, a discussion paper released by the Securities and Exchange Board of India (Sebi) on independent directors created a flutter in the corporate-governance community.On March 01, 2021, in a consultation paper titled ‘Review of Regulatory Provisions Related to Independent Directors’, the market regulator proposed to make prior shareholder approval mandatory for the appointment and reappointment of all independent directors. While