Law firm partners to lose company director seats as SEBI caps them at 7

Thursday, 27 February 2014 By Legally India Law firms

Independent directors, many of whom are also partners in law firms, will have to resign from the boards of several companies after the Securities Exchange Board of India (SEBI) last week capped the number of directorships a person can hold to seven, reported the Express.

Among law firms, the likes of Khaitan & Co managing partner Pradip ‘Pintu’ Khaitan, who currently holds 14 directorships, and Crawford Bayley senior partner Rajendra Ambalal Shah, who has served as chairman of the Indian arms of several multinational firms such as Pfizer Limited, Clariant Chemicals (India), Procter & Gamble and Godrfrey Philips, lead the figures for holders of director seats in India. 93 independent directors in India currently hold 283 seats.

The Companies Act passed by parliament in the winter session was more liberal with the cap at 10, added the report. Wholetime directors can serve on a maximum of three listed companies according to SEBI’s new norms.

Comments

SR 27 Feb 2014, 17:53

+1 -2

Really appreciate that SEBI move, which will be new mile stone towards good corporate governance. I am not able to understand the strategy of those Corporate Houses that why they are keeping Independent Director who already crossed the age of 82 years and working as senior partner of a big corporate law firm. Is it practically possible to attain all board meetings of all those companies and give fair opinion.

Elelmentary... 28 Feb 2014, 04:55

+4 -0

Your question answers itself, my friend :-)

overpriced memo-momos 2 Mar 2014, 14:21

+2 -0

Legal work given to firms which directors are members of (in terms of fees) should be filed with SEBI. As a shaming device if nothing else.

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