Independent Director

Independent Director under Section 149(6) of Companies Act, 2013

Company Law - An independent director is a non-executive director of a company who helps the company in improving corporate credibility and governance standards. They also ensure that there is no dominance of one individual or special interest group . They act as a coach, mentor and sounding Board for their full time colleagues. MEANING OF INDEPENDENT ...

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Independent Director – Work, Duties, Benefit & Compulsion

Company Law - Independent Directors refers to board members, not organization, helps share a neutral opinion as they are not attached to existing management...

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Analysis of Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2022

Company Law - Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2022 Applicability: Independent Directors Effective Date: 10th June, 2022 Summary of the Notification: The MCA has inserted sub-rule (5) in Rule 6, after sub-rule (4) of the Companies (Appointment and Qualification of Directors) Rules, 2014: Rule 6:- Compliance...

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Independent Director – Applicability of Online Proficiency Self-Assessment Test

Company Law - Compliances by a Person Eligible and willing to be appointed as Independent Director 1. Every individual – a. who has been appointed as an independent director (ID) in a company; or b. who intends to get appointed as an ID in a company, shall before such appointment, c. apply online to the institute (‘Indian Institute […]...

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Independent Directors need training for Financial Literacy

Company Law - The Companies Act, 2013 as well as LODR have provisions for the compulsory formation of certain committees and have also prescribed for the specific activities to be carried out by such committees. Both the Companies Act as well as SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR) have given importance t...

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Technical Guide on provisions of Independent Directors from Corporate Governance perspective

Company Law - ICAI releases Technical Guide on the provisions of Independent Directors from Corporate Governance perspective Good Corporate Governance is the manifestation of beliefs, values and actions to ensure maximum value creation to the stakeholders. Value creation is a term broader than wealth creation. The objective of corporate governance is...

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MCA Extended duration of several Schemes till 31.12.2020

Company Law - MCA on 28.09.2020, vide various circulars and notification extended the date of various schemes to 31.12.2020 which were launched for ease of doing Business, Schemes extended are as follows:- 1. Companies Fresh Start Scheme, 2020 2. LLP Settlement Scheme, 2020 3. Scheme for relaxation of time for filing forms related to Creation or Modifi...

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DIN-3 replaced by DIR-3C – ICSI

Company Law - Companies which do not have any of their Directors/Signatory details registered in the MCA2 1 system and who are desirous of filing DIR-3C Form are advised to get atleast one authorised signatory registered by contacting the concerned Registrar of Companies. ROCs have been requested by the MCA to allow entry of details from their offices ...

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Independent Directors liable for penal action (including for frauds)

Company Law - The concept of Independent Director has been proposed in the Companies Bill, 2009. Clause 147 of the Bill, provides for duties of directors which include the duty to act in good faith in best interest of company, to act with due and reasonable care, skill and diligence, to avoid any conflict of interest, to desist from achieving any undue...

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Govt changes norms to protect independent directors

Company Law - Independent directors will not be hauled up for the acts undertaken by companies without their consent or knowledge, as per the new norms announced by the government. "We have directed the Registrar of Companies (RoC) not to take any penal action against those independent directors who are not actively involved in the decision making proc...

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NI Act | Section 138 Proceedings Not Maintainable against Independent Non-Executive Directors

Sunita Palta & Ors. Vs Kit Marketing Pvt. Ltd. (Madras High Court) - Sunita Palta & Ors. Vs. Kit Marketing Pvt. Ltd. (Madras High Court) Non-Executive Directors are, therefore, persons who are not involved in the day-to-day affairs of the running of the company and are not in charge of and not responsible for the conduct of the business of the company.’ Adm...

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Annual report on capacity building of independent directors

Notification No. G.S.R. 580(E) - (19/08/2021) - Companies (Creation and Maintenance of databank of Independent Directors) Second Amendment Rules, 2021 MCA inserts vide Notification No. G.S.R. 580(E) dated 19.08.2021 ‘Rule 6 Annual report on the capacity building of independent directors’ to Companies (Creation and Maintenance of datab...

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Online Proficiency Self Assessment Test exemption for CA, CMA, CS & Advocates

Notification No. G.S.R. 579(E) - (19/08/2021) - MCA exempts CA, CMA, CS & Advocate having 10 years’ experience from Online Proficiency Self-Assessment Test for becoming Independent Director by notifying Companies (Appointment and Qualification of Directors) Amendment Rules, 2021 vide Notification No. G.S.R. 579(E) dated 19th August, 2021. M...

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Companies (Creation and Maintenance of data bank of Independent Directors) Amendment Rules, 2021

Notification No. G.S.R. 418(E) - (18/06/2021) - In case of delay on the part of an individual in applying to the institute under sub-rule (7) for inclusion of his name in the data bank or in case of delay in filing an application for renewal thereof, the institute shall allow such inclusion or renewal, as the case may be, under rule 6 of the Comp...

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MCA notifies amendment in Section 149 & 197 of Companies Act 2013

Notification No. S.O.1255(E) - (18/03/2021) - MCA notifies amendment in Section 149(9) (Remuneration of Independent Director In case of absence or inadequate profits) & 197 (Overall Maximum Managerial Remuneration and Managerial Remuneration in Case of Absence or Inadequacy of Profits) of Companies Act 2013 by notifying section 32 & 40 ...

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Remuneration Limit for non-executive/independent director notified

Notification No. S.O. 1256(E) - (18/03/2021) - MCA notifies maximum Remuneration payable by companies having no profit or inadequate profit to other director or directors (non-executive director or an independent director) by amending Schedule V of the Companies Act, 2013. Earlier the limit was only for managerial person. Also Read-MCA notifies ...

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Recent Posts in "Independent Director"

Independent Director under Section 149(6) of Companies Act, 2013

An independent director is a non-executive director of a company who helps the company in improving corporate credibility and governance standards. They also ensure that there is no dominance of one individual or special interest group . They act as a coach, mentor and sounding Board for their full time colleagues. MEANING OF INDEPENDENT ...

Read More
Posted Under: Company Law |

Independent Director – Work, Duties, Benefit & Compulsion

Independent Directors refers to board members, not organization, helps share a neutral opinion as they are not attached to existing management...

Read More
Posted Under: Company Law |

Analysis of Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2022

Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2022 Applicability: Independent Directors Effective Date: 10th June, 2022 Summary of the Notification: The MCA has inserted sub-rule (5) in Rule 6, after sub-rule (4) of the Companies (Appointment and Qualification of Directors) Rules, 2014: Rule 6:- Compliance...

Read More
Posted Under: Company Law |

Independent Director – Applicability of Online Proficiency Self-Assessment Test

Compliances by a Person Eligible and willing to be appointed as Independent Director 1. Every individual – a. who has been appointed as an independent director (ID) in a company; or b. who intends to get appointed as an ID in a company, shall before such appointment, c. apply online to the institute (‘Indian Institute […]...

Read More
Posted Under: Company Law |

Independent Directors need training for Financial Literacy

The Companies Act, 2013 as well as LODR have provisions for the compulsory formation of certain committees and have also prescribed for the specific activities to be carried out by such committees. Both the Companies Act as well as SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR) have given importance t...

Read More
Posted Under: Company Law |

‘Independent Director’ under Companies Act, 2013 & SEBI (LODR), 2015

Comparison in the Definition of ‘Independent Director’ under the Companies Act, 2013 & SEBI (LODR) Regulations, 2015 Section 149(6) of the Companies Act, 2013 Regulation 16(1)(b) of SEBI (LODR), 2015 An ‘Independent Director’ in relation to a company, means a director other than a managing director or a whole- time director or...

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Posted Under: Company Law |

Self-Assessment Test – Independent Director

Self-Assessment Test – (Independent Director) The Indian Institute of Corporate Affairs (IICA) under Section 150(1) of the Companies Act, 2013 to conduct Online Proficiency Self-Assessment. IICA by complying with Rule 6(1) of the Companies (Appointment and Qualification of Directors) Rules, 2014 will conduct this test through this Indep...

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Posted Under: Company Law |

Independent Director

Applicability: – Companies (Appointment & Qualification of Directors) Rules, 2014 – Chapter XI Appointment and Qualifications of Directors –SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 WHEN IS A COMPANY REQUIRED TO APPOINT INDEPENDENT DIRECTOR? Listed Company Unlisted Public Company Mandat...

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Posted Under: Company Law |

Opportunities for CAs as an Independent Directors

The concept of Independent Directors is a welcome step for corporate governance in India. Independent directors are expected to use their capacity, knowledge, and resources towards the maximization of stakeholders’ value and well-being....

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Posted Under: Company Law |

Role of Independent Director In Strengthening Corporate Governance Norms In India

Since the emergence of big corporate scandals in India, there has been much debate on Corporate Governance and also the role of the company director including the independent director. India being a preferred investment destination will have to strengthen the governance norms, so to achieve the highest investment ever....

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Posted Under: Company Law |

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