Almost all Indian companies have been able to sign on independent directors on their boards in accordance with the corporate governance clause in the listing agreement for stock exchanges.

The clause says at least 50 per cent of the board must comprise non-executive directors.

A study by the Business Standard Research Bureau shows all the 30 companies on the Bombay Stock Exchange Sensex, for which annual reports are available for 2002-03, have complied with the clause.

If a list of companies complying with the corporate governance clause were to be prepared, A V Birla group company Grasim Industries would come on top.

Grasim has packed 90 per cent of its board with non-executive and independent directors. The company has three non-executive and six independent directors on its 11-member board.

Reliance Industries, the largest Indian private sector company, has non-executive directors making up 61.54 per cent of its board. On March 31, 2003, Reliance had eight non-executive directors, including six independent directors, and five executive directors.

Fast-moving consumer goods (FMCG) giant Hindustan Lever has non-executive directors making up 50 per cent of its board. Infosys Technologies and the state-owned Bharat Petroleum also have 50 per cent of their boards filled with non-executive directors.

Multinational companies such as Colgate (55.56 per cent), Castrol (58.33 per cent), ITC (69.23 per cent), Nestle and Glaxo Smithkline Pharma (75 per cent each), too, have complied with the corporate governance clause.

Tata group companies like Tata Steel (80 per cent), Tata Engineering (76.92 per cent) and Tata Power (66.67 per cent) have all done better than the 50 per cent requirement.

The promoters of TVS Motors (88.89 per cent), Nirma (80 per cent), Ranbaxy Laboratories (72.73 per cent) and Bajaj Auto (69.23 per cent), too, have non-executive directors on their board well above the 50 per cent norm.