Role of Independent Directors in Ensuring Good Corporate Governance in Bangladesh
Sr No:
Page No:
79-87
Language:
English
Authors:
Md Jaber Parvez, FCS*
Received:
2025-01-13
Accepted:
2025-01-25
Published Date:
2025-01-28
Abstract:
Independent directors promote transparency, accountability, and fairness in
corporate management. In Bangladesh, with corporate governance challenges such as
concentrated ownership, lack of regulatory enforcement, and a nascent corporate
governance culture, independent directors must address the gaps in monitoring and
decision-making. This paper examines the role of independent directors in ensuring
good corporate governance with a focus on the ability of independent directors to
mitigate conflicts of interest, improve board effectiveness and protect minority
shareholders. By analyzing the legal framework, corporate practices and challenges
faced by independent directors in Bangladesh, the study highlights the impact of
independent directors in improving board dynamics and organizational health. The
findings highlight the need for greater regulatory support, robust selection criteria, and
appropriate training to enable independent directors to perform their duties effectively.
The study concludes with recommendations for policy reforms and capacity-building
efforts to enhance the contribution of independent directors in promoting sustainable
corporate governance in Bangladesh.
Keywords:
Independent directors, corporate governance, Bangladesh, CSR, drivers, influences, board of directors