scorecardresearch
Follow Us:
Thursday, April 15, 2021

CII suggests govt: Put in place safe harbours for independent directors

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.

By: Express News Service | New Delhi |
March 15, 2021 5:56:45 am
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.

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.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement
x