An Independent Director has become far more important now than ever before due to the ever growing focus on corporate governance by organizations. This is important to keep a check on mismanagement, fraud, and inefficient corporate governance. These are non-executive Directors whose responsibilities include, but are not limited to, ensuring that the business is not disrupted, there are no malpractices, the Board is functioning smoothly and there are vigilant and strong business practices. An Independent Director sits on the Company’s Board of Directors as a neutral observer. They are not a part of the Company’s top management and are not involved in day-to-day business or operations. Their main role is to bring a neutral outsider’s perspective to the decision making in the Company. They can only be put under any liability if they have the knowledge of or have been involved in any wrongful activities of the Company.