Board independence
ESG & GovernanceThe share of a board made up of independent directors, and more broadly the board's ability to act separately from management and the promoter.
As a number, board independence is independent directors divided by total directors. Indian rules require at least one-third or one-half, depending on who chairs the board. As a quality, it depends on the directors' tenure, links to the group, attendance, committee roles and willingness to disagree. A board that meets the legal ratio can still lack real independence. See the Board Independence Ratio formula.
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