From the updates, we got to know that several independent directors serving in McLeod Russell India having citing health and old age. However, they are the directors that continue to serve on board of other companies. Therefore, the trend has been red-flagged by the government. Which has called more accountability from these independent directors?
According to the latest updates, a half dozen individuals have resigned from the board. Hence, the reason for resigning is old age, severe health issues, and poor health also. On the other hand, all the directors are holding dictatorships at companies. While others are there will fresh assignments.
With respect to the resigning of these directors, the SES is of the view to activate the new ones to compensate for the loss. The government firm said that the SES has certain directors that jump ship from companies. Just because of the trouble to those in better shape for personal gains.
Therefore, the directors have failed shareholders and carried their fiduciary duty out.
Independent directors quitting weak companies is not a trend. It is just there to bring more accountability. The company’s act and market regulator securities have made compulsory for the directors to mention the reason for quitting. Therefore, government experts say that strict actions will be taken against directors not following the requirements of the letter.
SES says that reasons such as health issues, time constraints, and old age are merely an excuse to bail out. Hence, this will result in the financial health of a company in limbo.
Stay tuned with us to know more about McLeod Russel.