Listed companies independent director: Listed companies should be required to have at least six directors on the board with a minimum of 50% representation of independent directors (up from one third currently) including one woman director.
Safeguarding the interest of Independent director: To safeguard the interest of independent directors it proposed that the top 500 companies by market capitalization must undertake D&O (Directors and Officers) Insurance for its independent directors.
Minimum remuneration: The panel suggested a minimum remuneration of Rs 5 lakh for independent directors per annum and a sitting fee of Rs 20000-50000 for each board meet.
Remuneration of executive director: It also sought to make it mandatory to seek public shareholders approval for annual remuneration of executive directors from promoter family if the amount exceeds Rs 5 crore or 2.5 per cent of the company’s net profit.
Transparency: The committee has proposed disclosure of the expertise of the directors being appointed, increasing the number of board meetings from four to five every year and capping the maximum number of directorships to seven by April 2020.
