More than 130 independent directors in nearly 75 companies have stepped down from their posts after the 10-year ‘grandfathering period’ ended on March 31.
Notable firms like Reliance Industries, Adani Power, Larsen & Toubro, Asian Paints, Avenue Supermarts, and Marico have announced the departure of independent directors in the past week.
Under the Companies Act 2013, an independent director can serve a maximum of two terms of five years each. Independent directors who had already served the maximum when the amendment of the Act came into effect were given an additional 10 years to relinquish their positions. This additional period of 10 years is referred to as the grandfathering period.
