On August 2, Pandey met with top executives from 17 leading executive search firms, including Korn Ferry, Egon Zehnder, ABC Consultants, Kestria, Pedersen & Partners, DHR Global, Boyden, Sheffield Haworth and KPMG. “We received a very enthusiastic response from them,” he said. “They were also asked to suggest ways to further strengthen the data bank and its applicability.”
Pandey also heads the Indian Institute of Corporate Affairs (IICA), a state-run institution with which all independent directors and those aspiring to take on such roles must register.
Currently, only corporations can access this database for a nominal fee, but since large publicly traded companies and conglomerates often outsource due diligence on potential candidates to search firms, IICA is seeking to make the database available to these entities as well.
However, most companies now use the database to obtain crucial details about independent directors.
According to experts, the latest plan is expected to broaden the pool of candidates, make it easier to choose the right candidates with the right experience and reduce the possibility of too few people on the boards of too many companies. It will also make it easier for companies to recruit more independent female directors.Extensively tracked database
The database is already widely monitored and has 3,411 companies, including most of India’s largest companies, subscribed to it, according to an IICA presentation at the meeting, reviewed by ET.
There are 30,453 independent directors and candidates registered on the website, of which 8,740 are women. 15,045 profiles have been made available to companies seeking information on independent directors. Of those registered, 20,589 are currently members of the boards of directors of various companies.
Training of independent directors
IICA is conducting training programmes, often involving senior executives of large companies and subject matter experts, for those aspiring to become independent directors or wishing to expand their knowledge base on different aspects of the Companies Act or finance, etc., Pandey said. NFRA is acting as the institute’s knowledge partner in many of these initiatives.
In 2019, the government amended the company rules (appointment and qualification of directors) to require all existing and aspiring independent directors to register with IICA, paving the way for the data bank. Once registered, they must pass an online competency self-assessment test within one year.
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