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| Article Name : | | | MFIs IN INDIA: ROLE OF INDEPENDENT DIRECTORS IN ENSURING THE TRADE-OFF BETWEEN SOCIAL AND FINANCIAL GOALS | | Author Name : | | | Taruna , Momina Bushra | | Publisher : | | | Ashok Yakkaldevi | | Article Series No. : | | | GRT-6155 | | Article URL : | |  | Author Profile View PDF In browser | | Abstract : | | | Acompany is managed by Board of Directors (BODs) on behalf of its shareholders. To check whether the board of directors are working for the interest of the company and its stakeholders or for their own self-interest, a proper monitoring is required. To meet the purpose of proper monitoring, need of Independent Directors (IDs) arises around the world. These IDs are outsiders to the company and are independent in their perspectives, views and decision making. They monitor the Executive Directors (EDs) who take decisions related to policy making and day to day business affairs. This paper attempts to depict the role of independent directors in Micro Finance Institutions (MFIs) in India. The concept of IDs was introduced late in India. Role and provisions related to IDs didn’t get much attention earlier and its need was realized in recent past. When SEBI made their appointments mandatory, IDs were misused by the companies resulting into many scams for which the society faced critical consequences and Microfinance Institutions (MFIs) are one of the examples. | | Keywords : | | |
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