Lawyers and consultants likely to face stringent independent director norms
Proposed changes in the Corporate Laws (Amendment) Bill 2026 could tighten eligibility for lawyers and consultants as independent directors by lowering transaction thresholds, aiming to reduce conflicts of interest.
Lawyers and management consultants serving as independent directors on the boards of India Inc could face tighter eligibility rules if the government lowers the limit on transactions between their professional firms and the companies where they serve as directors.
As per a new provision under the Corporate Laws (Amendment) Bill 2026, the existing fixed 10% threshold would be replaced with “10% or such lower per cent”. This change will allow the government to set a lower limit through rules.
