Rethinking the role, liability of independent directors
×
Neutrality and professional repute can give a board a new paradigm of thinking through an ‘independent director’. The Board of Directors is in a fiduciary position with respect to the company. The independent director is part of the board, but is disconnected with the daily affairs of the company. This gives rise to the question of extent of his/her liability for collective actions of the board. Courts have now distinguished “connivance” from consent that it does not require the parties to be of one-mind. Additionally, in
Chintalapati Srinivasa Raju Vs Securities and Exchange Board of India, the Apex Court recognised the role of independent directors, holding they are not responsible for the conduct of the business of the company. Therefore, there is a window for caveat in legal principal to make an independent director under the exemption from vicarious liability exist.
The law on dominant position and the grey area of its abuse
|
Updated on
December 13, 2020
Abuse occurs when an enterprise uses its dominant position in the ‘relevant market’ in an exploitative manner to its own advantage. - Hollie Adams
1/2
Abuse occurs when an enterprise uses its dominant position in the ‘relevant market’ in an exploitative manner to its own advantage. - Hollie Adams
2/2
×
The legality of this anti-competitive practice is likely to be tested more and more in the coming days
As the Indian economy emerges out of the woods and begins to grow, tensions over a player in the market abusing his dominant position are likely to be tested in law with increased frequency. Last year, the Competition Commission of India probed Amazon for abuse of dominant position, and concluded the retailer did not. And now, Google’s G-pay services are under the lens on similar grounds.