Fraud prevention: The recommendations if adopted will help in preventing the corporate frauds (such as kingfisher airlines fraud) and ensure the company works in a socially responsible manner.
Challenges
Independent director: The move to allow company boards to choose the independent directors invalidates the very purpose of appointing them.
Losing control over the company: Further the recommendation that half of the member of board of director should be independent director, the corporate India may feel that this is akin to losing control of the company.
Educational criteria: Moreover, specifying the educational criteria for the board of director does not define the competency of the person. Thus the education alone cannot make one a domain expert.
