Are Independent Women Directors truly Independent?

In corporate governance under Section 149 of the Companies Act, 2013 that requires to have women directors appointed and this has progressed to the focus of independent women directors. Whereas the statutory framework is aimed at institutionalising gender diversity, the reality is usually constructive compliance instead of being substantive independence, where appointments can still be made according to the controlling shareholders or internal management interests instead of according to the independence spirit as envisaged in the law. The principle of independence demands the absence of influence, impartial judgment and fiduciary duty to all stakeholders; however, informal control and relationship proximity often water down this principle. The paper aims to examine the question of whether diversity has led to any meaningful governance reform, or it is still a procedural formality, by comparing the traditionally male dominated board rooms with the rest of the world, which is more consultative with their views and opinions. Because when independence is compromised, this potential remains unrealised. It posits that the real adherence is not in numeration but in that of real power, voice, and influence without which the issue of gender diversity will become a farfetched concept instead of a transformational one.