Give us your phone number and email
we will send you the details.

By contacting this business you agree to follow all our terms and conditions mentioned here.

Verify OTP

Please check your email for the OTP, if not received please refresh the page and try again, also check your spam folders.

Upload Resume to create profile
Email: |
Create Job Alert

Query: Who are Qualified to be appointed as Independent Director

Category: Corporate Law

Answer: Following persons are allowed to be appointed as Independent director: A) Who, in the opinion of the Board , is a person of integrity and possesses relevant experties & experience; B) i) Who is or was not a promoter of the Company or its Holding, Subsidiary or Associate Company; ii) Who is not related to Promoters or directors in the company, its Holding, Subsidiary companies; C) Who has or had no Pecuniary (relating to Money) relationship with Company and its its Holding, Subsidiary companies or their promoters, directors during the two immediately preceding financial years or during the current financial year; D) none of whose relatives has or had pecuniary relationship with company, its Holding, Subsidiary companies or their Promoters, directors -amounting to 2% or more of its gross turnover or total income; -or fifty lakhs or such higher amount as may be prescibed, whichever is lower. During the two immediately preceding financial years or during current financial year. E) Who neither himself nor any of his relative- 1. Holds or has held the position of KMP or has been employee of the Company or its its Holding, Subsidiary companies in any of the 3 financial years; 2. He or his relative has an employee or proprietor or a partner in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed- as a auditor firm, Company Secretary in practice, Cost Auditor, Legal Consultant of the company or its Holding, Subsidiary companies; 3. Holds with relaives 2% or more of the total voting power of the Company; 4. He or his has not be Chief Executive or Director of any Non Profit Organization that receive 25% of its receipt from the Company or its Holding, Subsidiary companies or its Promoters or directors or that NGO holds 2% or more of the total voting power of the Company. F) Who possesses such other qualification as may be prescribed. Tenure of Director:- an independent director hold office for a term up to 5 consecutive years, -Also eligible for reappointment by passing Special Resolution and also require its reappointment in Boards Report. -He shall not hold office for more than 2 Consecutive terms, but shall not be eligible to appoint after expiration of 3 Years of ceasing to become an independent director. Remuneration to Independent Director:- An independent director shall not be eligible for any stock option as per section 149(9) of Act. But they may receive remuneration by way of fee provided under section 197(5) of the Act. Sitting fees for Board meeting and other committee meeting shall not be exceed Rs. 1,00,000 per meeting.

Date Posted 26-Dec-2019
Posted By Divya Sharma
Views: 369



Related Queries