Govt provides clarity on independent directors' tenure

Tags: News
Easing norms, the government has said an independent director's previous tenure would not be counted towards the ten-year period limit, as mandated under the new companies law, provided that the individual is appointed afresh before March 2015.

The move comes after various stakeholders had sought clarifications on several aspects of the Companies Act, 2013, including those related to appointment and qualification of independent directors.

Under the new Act, an independent director can have a maximum of two tenures of five consecutive years (a total of ten years), with a cooling off period of three years.

"It has also been clarified that if a company intends to continue an existing independent director, his appointment would need to be made expressly afresh under the Act before March 31, 2015, and his earlier tenure will not be counted for such fresh appointment under the Act," the Corporate Affairs Ministry said.

The Ministry is implementing the Companies Act.

In a circular yesterday, the Ministry also clarified that "in case of an independent director, "pecuniary relationship does not include receipt of remuneration, as independent director, from the holding, subsidiary or associate company".

EDITORIAL OF THE DAY

  • Modi’s interview with Times Now failed to reveal the mind of the man

    For a prime minister, who prefers monologue and one-way conversation on twitter and radio to long-winded one-on-one interviews, Narendra Modi’s 85-m

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Teachers must accept innovation

University teachers had been complaining for the past two years ...

Zehra Naqvi

How does a bird learn to sing?

There’s nothing like bir­dsong to give you a taste of ...

Dharmendra Khandal

The unfortunate death of a tigress & its repercussions

In nature it is not easy to gather investigative evidences, ...