Appointment of an Independent Director

Posted on 19-04-2016        By ADMIN

Appointment of an Independent Director- Section 149 (10 )  

Subject to the provisions of Section 152, an independent director can be appointed for a term of up to five consecutive years on the Board. However, in case of his reappointment for further five year then special resolution passed in general meeting and disclosure of such appointment is made in the Board’s report shall be required. {Section 149 (10)}    

Further independent director can be considered for re-appointment after expiration of three years of ceasing to become an independent director but he must not be appointed/associated with the company directly or indirectly in any other capacity during the said period of three years. Any tenure of an independent director on the date of commencement of this Act is not considered for the above term. {Section 149 (11)}  

The provisions of retirement of directors by rotation are not applicable on Independent director. {Section 149 (13)} 

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