Independent Directors Flashcards
Which company should have independent directors and how many?
Which company’s are exempted?
For how many years should the conditions not be satisfied to be not covered under this section?
1.Every listed company - atleast 1/3 of tot dir
(Fraction rounded off as one)
2.Atleast 2 dir. for Public company PSC>=10 CR or
T/O>=100 cr or
In aggregate o/s loans, debentures, deposits >50 cr.
3.Unlisted public co not covered -
JV,WOS,Dormant co.
where a company ceases to fulfil any of three conditions laid down in sub-rule (1) for three consecutive years, it shall not be required to comply with these provisions until such time as it meets any of such conditions;
What is the term of an independent director and cooling off period?
an independent director shall hold office for a term up to five consecutive years on the Board of a company, but shall be eligible for reappointment on passing of a special resolution by the company and disclosure of such appointment in the Board’s report.
no independent director shall hold office for more than two consecutive terms, but such independent director shall be
eligible for appointment after the expiration of three years of ceasing to become an independent director
