The recent departure of ex-SBI deputy managing director, Manju Agarwal, from the board of CMS Info Systems has brought to attention the difficulties encountered by independent directors managing numerous board positions. Agarwal’s exit from CMS Info Systems coincided with her resignation from Paytm Payments Bank Limited (PPBL), where she served as an independent director, as per a report in Economic Times.
Agarwal’s decision to seek reappointment at CMS Info Systems after stepping down from PPBL faced criticism, with accusations of selective “preoccupation” and scrutiny over her shifting allegiances. Ultimately, just before the conclusion of the postal ballot voting on her reappointment, Agarwal chose to resign from the board of CMS Info Systems, as reported by ET.
These events suggested that Agarwal’s attempt at reappointment encountered scrutiny and ultimately led to her resignation from CMS Info Systems.
The timing of Agarwal’s departure from PPBL, coinciding with the Reserve Bank of India’s (RBI) ban on Paytm Payments Banks Limited, raised concerns among corporate governance experts and proxy advisory firms. While Agarwal cited “personal commitments” for resigning from PPBL, her continued presence on the boards of eight other companies, including listed entities like Glenmark Life Sciences and Polycab India, came under scrutiny.
Proxy advisory firm Stakeholders Empowerment Services (SES) questioned Agarwal’s selective approach to her “personal commitments,” highlighting doubts about her adherence to the duties expected of an independent director. SES criticized Agarwal’s supposed failure to safeguard the interests of minority shareholders at PPBL, raising questions about her resignation timing and its true motivations.
This situation has reignited discussions about potential conflicts of interest and time constraints faced by independent directors holding multiple board roles concurrently. Agarwal’s extensive experience and expertise in banking and finance made her a sought-after candidate for various board positions. However, her handling of challenges at PPBL has cast doubt on her reputation as a diligent and effective independent director.
