The Ministry of Corporate Affairs (MCA) on Monday assured that no prosecution proceedings would be initiated against Independent Directors and Non-Executive Directors of Companies without the availability of sufficient pieces of evidence of their involvement in frauds committed by the companies.
MCA issued a circular to its Regional Directors, Registrar of Companies (RoCs) and official liquidators with respect to prosecution proceedings against Independent and Non-Executive Directors. The circular was issued in the wake of the instances of Independent and Non-Executive Directors coming under the scanner for alleged corporate misdoings.