A matter of governance: When independent directors call it quits midway

Most independent directors who quit do not explain why they are leaving before the end of their terms

On December 12, power trading company PTC India made an exchange announcement about the resignation of four independent directors. The executives' letters flagged governance issues, though the New Delhi-based company denied lapses.

Independent directors quitting midway appears like an exodus, shows an analysis of data from primeinfobase.com. The tracker registered 400 independent directors resigning before the end of their tenure in 2022, or over seven every week as seen in chart 1 (click image for interactive chart).

An independent director acts on behalf of shareholders and protects their interest in a company. Many have been held responsible for not doing their job