If well-placed sources are to be believed the proposal for appointment of approx. 190 Independent Directors (IDs) on the Board of various Central PSUs are pending since April 2019. Amid huge number of pending vacancies IDs are being given extension for 3 months as ad hoc measures. Reportedly, the sanctioned strength of IDs on CPSEs’ Board is 680 of which one third of Independent Directors complete their tenure every year and thus create more than 200 vacancies on the Boards of various CPSEs every year.

It may be underlined that Independent Directors in relation to a company means a director other than a MDs, Full-time Director or a Nominee Director. They constitute such category of Directors who are expected to have impartial and objective judgment for the proper functioning of the company.

As per Section 149(6) of the Companies Act, 2013 at least 1/3rd of total number of Directors shall be ID’s in case of Public listed companies having a paid up share capital of  Rs100 crore or more; Or Public companies which have outstanding loans or borrowings or debentures or deposits exceeding Rs 200 crore.