Business · Companies · 1 hr ago
Indian listed companies seek more legal advice on board governance
Indian listed companies are turning to law firms for board governance advice as boardroom tensions and governance expectations grow.
Their questions cover independent director appointments, board processes, compliance and how to handle directors who disagree with management.
Independent director resignations reached 668 in FY26, a five-year high, according to Prime Database.
That was 15% more than in FY25 and 25% more than in FY24.
Indian listed companies must have at least one-third independent directors on their boards, and those directors can seek professional advice and record unresolved concerns in meeting minutes.
Disagreement is not necessarily a problem: business leaders say board debate can help, provided differences are addressed through discussion focused on the company and its shareholders.
Disputes at companies including Gensol Engineering and KRBL have brought concerns about board processes and information-sharing into public view, while companies continue to seek advice on their governance structures.
Indian listed companies are increasingly seeking legal advice on board composition, independent directors and governance disputes.
Law firms say the advice goes beyond statutory compliance to cover board processes, related-party transactions and reporting duties.
Independent director resignations from listed companies reached 668 in FY26, a five-year high, according to Prime Database.
The rise in advisory work is linked to boardroom tensions and efforts to adopt higher governance standards.
- Who
- Indian listed companies and other firms are seeking advice from law firms.
- What
- They are asking about board governance, independent director roles and disagreements.
- When
- The advisory work has increased over the past year; independent director resignations reached a five-year high in FY26.
- Where
- India.
- Why
- Companies are addressing boardroom tensions and tighter governance standards while balancing independent oversight with commercial decision-making.
This story does not have two clearly opposing sides.
Listed companies recorded 530 independent director resignations, according to Prime Database.
Independent director resignations rose to 564.
Gensol Engineering independent director Arun Menon resigned, raising concerns about the company’s high debt.
KRBL independent director Anil Kumar Chaudhary resigned, citing concerns including board minutes and information allegedly withheld from directors.
Independent director resignations reached 668, the highest level in five years.
- FY26 resignations
- 668 independent directors resigned from listed companies.
- FY25 resignations
- 564 independent directors resigned from listed companies.
- FY24 resignations
- 530 independent directors resigned from listed companies.
- Board requirement
- At least one-third of a listed company’s directors must be independent directors.
- Gensol Engineering
- Arun Menon resigned as an independent director in April 2025.
What people are saying
Companies want to know what the law requires, where the board’s discretion ends and how to deal with a director who disagrees.
Disagreement within a board is healthy, and dissent is not the same as disruption.
But the trend towards adopting better governance standards as a motivating factor has seen an uptick.