NEW DELHI: The Centre is actively considering setting up a database of independent directors, Minister of State for Corporate Affairs P P Chaudhary said on Thursday. Speaking to a gathering of newly appointed independent directors of public-sector undertakings, he said, “Section 150 of the Companies Act mandates the maintenance of such a database and we are considering utilising the Indian Institute of Corporate Affairs for this purpose.”Such a database could help the government track down violations of the Companies Act and help in strangling the flow of illicit funds, say experts.
“The issue of conflict of interest in related party transactions needs to be looked at judiciously. Independent directors have to exercise special care while looking into such transactions,” said the minister.
The ministry has deregistered 2.26 lakh firms for being inactive for long, aside from disqualifying over 3 lakh directors as several were involved in illegal activities, he pointed out, adding that if independent directors were vigilant, such instances would not take place.