The Securities and Exchange Board of India vide notification dated August 03, 2021 have amended LODR Regulations, 2015.
There have been few queries received from listed companies with respect to the above-mentioned amendment. To address these queries, FAQs as per Annexure I are being issued.
Companies are requested to comply with the requirement of listing regulations and other applicable regulations as amended from time to time. The FAQ’s can be referred only for the assistance.
Annexure I
Q1. As per newly inserted regulation 17(1C) the listed entity shall ensure that approval of shareholders for appointment of a person on the Board of Directors is taken at the next general meeting or within a time period of three months from the date of appointment, whichever is earlier. Whether the said new provision shall be applicable to directors appointed before the effective date of the amendment i.e. January 01, 2022?
Reply: The existing provisions shall be applicable for the directors appointed on or before December 31, 2021. The amended provisions of newly inserted regulation 17 (1C) shall be applicable for the appointment on or after January 01, 2022. However, the type of resolution (Ordinary or Special) to be passed shall be as per the prevailing provisions of LODR.
source- BSE
