New Delhi: The Naresh Chandra Committee on December 23 suggested an increased role for independent directors in listed companies and an overhaul of disciplinary procedures for accountants while fixing the responsibility of certification of audited accounts on Chief Executive Officers and Chief Financial Officers.

The high-level committee which was appointed to examine various corporate governance issues including auditor-company relationship submitted its report on December 23 to Finance Minister Jaswant Singh.

While announcing the major recommendations of the report, Chandra said public opinion would now be elicited for fine-tuning this comprehensive report, and carry out necessary changes in the Companies Act and other statutes.

Among the major recommendations of this body include a far greater role of independent directors in listed companies, so that at least half of the board of any listed company with paid-up capital and free reserves exceeding Rs 10 crore should comprise independent directors. Also, audit committees of such companies should entirely comprise independent directors.

Besides, the CEOs and CFOs of all listed companies and public limited ones of the same size should certify correctness of the annual audited accounts.

However, the Committee has not recommended rotation of audit firms. Instead, it has mooted compulsory partner rotation.

PTI