New Delhi : Independent directors should have the freedom to exercise their judgement without any fear of retribution, proxy advisory firm IiAS said on Tuesday amid the deepening boardroom tussle between Tatas and Cyrus Mistry, reports PTI. Following the ouster of Mistry as Chairman of Tata Sons last month, boardroom battle has been brewing with independent directors of some Tata group companies backing him. Mistry continues to hold the chairmanship of various firms, including Tata Motors.
Apart from seeking extraordinary general meetings for removal of Mistry as director from different group companies, Tata Sons has also sought ouster of Nusli Wadia as independent director. “As a principle, such diversity of opinion should be promoted and not stifled. Healthy conflict and debate can bring in more openness in the boardrooms and prevent the risk of insularity.
“For this, independent directors must be given the freedom to exercise their own judgement without any fear of retribution,” IiAS said in a report.The proxy advisory firm also observed that as it is, independent directors have rarely been found to be independent. “Hanging the Damocles Sword of eviction over their heads will be counter-productive. More importantly, it will be a great disservice to the minority shareholders,” it added.
