The Companies Act 2013 introduced the tenure rule for independent directors a decade ago. Under this, independent directors will have a 10-year maximum term on the board of a company; this ten-year count was from 1 April 2014. Consequently, long tenured directors are now retiring, and will continue to do so over the next 18-months and new directors are being appointed in their place.

In a series of pieces, we look at how companies are managing this transaction.

In the first piece (November 2023), we reviewed the headline numbers for the NSE 500 companies and the impending board refresh.

In this blog we call out some practices that are compliant with the letter of the regulations, but we believe not their spirit. Such practices defeat the purpose of mandating rotation of independent directors.

Read our blog here