Summary of provisions on Independent
Directors
The following class or classes of companies shall have at
least two directors as independent directors -
(i) the Public Companies having paid up share capital of
ten crore rupees or more; or
(ii) the Public Companies having turnover of one hundred
crore rupees or more; or
(iii) the Public Companies which have, in aggregate,
outstanding loans, debentures and deposits, exceeding fifty crore rupees:
Provided that in case a company covered under this rule
is required to appoint a higher number of independent directors due to
composition of its audit committee, such higher number of independent directors
shall be applicable to it:
Provided further that any intermittent vacancy of an
independent director shall be filled-up by the Board at the earliest but not
later than immediate next Board meeting or three months from the date of such
vacancy, whichever is later:
Provided also that 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;
Explanation. - For the purposes of this rule, it is here
by clarified that, the paid up share capital or turnover or outstanding loans,
debentures and deposits, as the case may be, as existing on the last date of
latest audited financial statements shall be taken into account:
No comments:
Post a Comment