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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
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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

Journal: IRASS Journal of Multidisciplinary Studies
ISSN(Online): 3049-0073
Publisher: IRASS Publisher
Frequency: Monthly
Language: English

Role of Independent Directors in Ensuring Good Corporate Governance in Bangladesh