The SEBI’s Clause 49 (2004) and other regulatory
changes have put tremendous demands on an AC.Having
the right directors on an AC—with mandated independence
and financial literacy combined with integrity, healthy
skepticism and judgment, knowledge of the corporation
and industry, and the courage to challenge decisions—is an
important driver of an AC‘effectiveness’. The AC members
must learn “how to work smarter and to allow enough time
to complete their ever-lengthening list of duties.” In fact,
given their ‘pumped-up’ workload, they are struggling to
know what to put at the top of the list(Ahmed et al., 2009).
As Heffes (2007) lucidly puts it: “The A Chas a lot on their
plates and so they need help to ensure they see the forest,
not just the trees. While they should review information
carefullyand challenge management when necessary;
they should not be resolving everyday issues or making
management decisions.”