March 15, 2021 5:56:45 am
The Confederation of Indian Industry (CII) has suggested putting in place safe harbours for independent directors, calling for proceedings against them to be initiated only when there is prima facie evidence of their involvement in a matter.
The CII has submitted a paper to the Ministry of Corporate Affairs highlighting matters with respect to framework for settlement of offences; liability of independent directors; vicarious liability, etc.
The chamber said it is necessary to expressly exempt independent directors from vicarious criminal liability since they are not involved in the day-to-day running of the company.
A non-obstante clause may be incorporated in the law to exclude independent directors from any vicarious criminal liability for offences committed by the firm, it said.
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