Independent Director Mid-Term Resignations Hit Highest Since 2017

As of mid-December 2025, 510 Independent Directors have resigned from listed companies before the end of their term, the highest since 2017, according to primeinfobase.com. This is up from 393 resignations last year and 265 in 2019, showing a sustained increase since the pandemic.

Many exits occurred in smaller companies, with 142 from firms with market capitalisation below Rs 100 crore and 191 from companies valued between Rs 100 crore and Rs 1,000 crore. Less than 12% of resignations were from companies with market capitalisation above Rs 10,000 crore. Factors cited for resignations include other commitments, health issues, regulatory requirements, conflicts of interest, board appointments, relocation, and age. Sectors with the highest exits include textiles, software, and FMCG, while the top five sectors accounted for less than one-third of the total. Regulatory limits on consecutive terms and investor scrutiny are influencing Board changes.