A Study on the Relationship of Role of Independent Directors with Corporate Governance of a Company

The value of independent directors has received significant attention from the worldwide corporate governance movement. The prevention of fraud, misconduct, and other potential problems in corporate governance is seen as being significantly aided by independent directors. They are also thought of as a way of balancing the interests of the individual, the economy, and society. The supervision role of the board of directors is highlighted by the agency viewpoint on corporate governance. This study intends to investigate how the independent director’s interaction affects financial performance and managerial quality as well as the overall performance of the company in making decisions. The research investigates if the board's independence has an effect on maximising corporate value. To ensure that the board fulfils its tasks honestly and keeps management responsible, it is crucial that management be independent. The present situation of companies in India and the function of independent directors in corporate governance are the main topics of the essay. Nevertheless, there are various problems with the way independent directors are currently used in India, including a lack of expertise, a lack of independence, a lack of drive, and a lack of knowledge. The need of independence for independent directors is emphasized throughout the article in order to preserve sound corporate governance.