Independent directors skip red flag details while quitting

Not giving honest explanations to shareholders is a breach of the spirit of Sebi’s norms

- Dipali Banka & Nehal Chaliawala

By quitting India Gate basmati rice maker KRBL Ltd’s board on 8 September over governance issues, Anil Kumar Chaudhary joined a rare group—only the 22nd independent director in six years to voice disagreements with management while resigning from a listed firm.

That rarity becomes clearer when set against the larger picture: In the same period, more than 3,100 independent directors exited the boards of more than 1,500 listed firms for reasons other than superannuation, retirement, demise, or completion of term, according to data shared by market intelligence firm Prime Database.

Most outgoing independent directors—even if they resign over governance concerns or management disputes—cite explanations like ‘personal reasons’ in their resignation letters.