2020 Impact: 50 Companies Reflect A Reduced Size Of Board
- 23-Dec-2020
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A study of the Nifty 50 companies, reflects a reduced size of corporate boards, higher audit fees and improved compliance on the CSR front. The average number of directors in the Nifty 50 companies reduced from 12 to 11. This is despite the new regulation recommended by Kotak Committee on Corporate Governance, that increased the minimum board size from four to six directors.
L&T with 20 directors had the largest sized board (the composition was 22 in the previous year), while Eicher Motors and Tata Motors had the least number of directors at six each, which is the minimum requirement.
Section 149 of the Companies Act, requires a public limited company to have a minimum of three and a maximum of fifteen directors (which can be increased via a special resolution passed by shareholders). As per Regulation 17 of Sebi’s ‘Listing Obligations and Disclosure Requirements (LODR), the top 1000 listed entities by market cap, are required to have a minimum of six directors.
