Excellence Enablers has highlighted the importance of independence across the corporate governance ecosystem in its July 2026 newsletter, Edition #123, titled “Independence – Fact, Fiction and Fantasy.”

Authored by M. Damodaran, Chairperson of Excellence Enablers and former Chairman of SEBI, UTI and IDBI, the article examines what independence means in a corporate environment and why it should not be viewed only as an attribute of Independent Directors.

The article explains that independence in the boardroom involves each Director applying their own mind to available facts and information and contributing objectively to decision-making. It also explores the question of who Directors need to be independent from and cautions against viewing Independent Directors simply as an opposition group within the boardroom.

The discussion extends beyond Directors to auditors, Internal Audit, Compliance functions and Board committees. The article notes that the independence of Internal Audit can be affected when it reports to senior management and highlights the importance of functional reporting to the Audit Committee. It also emphasises the need for the Nomination and Remuneration Committee to function objectively and without fear or favour.

The article further considers independence in regulatory organisations, the Judiciary, conventional media and social media. It raises questions about whether these institutions consistently operate with objectivity, fairness and impartiality.

The central message is that independence is closely connected with avoiding conflicts of interest and supporting honest decision-making in the interests of stakeholders. While laws and regulations can address conflicts of interest, the article observes that independence cannot easily be created through legislation alone.

The article concludes by questioning whether independence is becoming increasingly difficult to achieve in a world that values speed over accuracy, while emphasising the continuing importance of correctness, fairness, objectivity and trust.

Excellence Enablers continues to focus on corporate governance with an emphasis on adding value rather than merely ticking boxes.