Company Law : The article explains that companies need a balanced mix of Executive, Non-Executive, and Independent Directors for effective gover...
CA, CS, CMA : Analysis of legal and ethical limits on an Independent Director becoming Statutory Auditor, focusing on cooling-off restrictions u...
Corporate Law : This piece explains that Independent Directors are not automatically liable, but face risk where knowledge, consent, or neglect is...
Company Law : Learn the role of Independent Directors (IDs) under the Companies Act, 2013, and SEBI LODR in ensuring good corporate governance....
Company Law : Erroneous MCA data classifying Independent Directors as 'Directors' leads to legal issues, prompting a systemic correction to prot...
Company Law : 86% of Independent Director positions in CPSEs remain vacant. Govt follows a structured process for appointments through ministrie...
Company Law : ICSI requests amendments to Sections 204 & 149(6)(e)(ii)(A) of Companies Act,, to enable Company Secretaries in practice to be Ind...
Company Law : ICAI releases Technical Guide on the provisions of Independent Directors from Corporate Governance perspective Good Corporate Go...
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 ...
Company Law : Companies which do not have any of their Directors/Signatory details registered in the MCA2 1 system and who are desirous of filin...
Company Law : Delhi High Court orders MCA to review independent director's request for designation correction in official records to prevent und...
Fema / RBI : Madras High Court overturns wilful defaulter tag on former IAS officer, citing lack of evidence linking him to company's financial...
SEBI : Regulation 17(1A) is not applicable for the purpose of filling up a casual vacancy under Section 161(4) of the Companies Act. Reg...
Corporate Law : Sunita Palta & Ors. Vs. Kit Marketing Pvt. Ltd. (Madras High Court) Non-Executive Directors are, therefore, persons who are no...
Company Law : ROC Delhi penalised a company and its directors after it failed to appoint mandatory independent directors despite crossing the pr...
Company Law : ROC Mumbai penalized a company and its officers for failing to fill vacancies of independent directors within the statutory timeli...
Company Law : The company delayed appointment of independent directors despite crossing the threshold. The authority held that prolonged non-com...
Company Law : The issue involved non-compliance with Section 150(1) due to improper appointment of an independent director. The authority held t...
Company Law : The ROC penalized the company for not appointing an Independent Director from the IICA databank. The ruling highlights strict comp...
Eligibility criteria for appointment as an Independent Director As per Section 2(47) of the Companies Act, 2013, ‘independent director’ means an independent director referred to in sub-section (5) of section 149. Comparison of Eligibility to be appointed as independent director under section 149 of companies act and Regulation 16(b) of SEBI (LODR) Regulations, 2015. […]
♣ Independent Director (Define): Means an independent director referred to in Section 149(6). ♣ Applicability of Independent Director Provisions : Listed Company The Public Companies having paid up share capital of 10cr or more; or The Public Companies having turnover of 100cr or more; or The Public Companies which have, in aggregate, outstanding loans, debentures […]
As per Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014, the following classes of companies shall have at least 2 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.
Section 149 of Companies Act 2013 deals with Appointment and Qualification of Directors. Same Section also contains Provisions related to Appointment of Independent Directors. 1. Applicability of Independent Directors (“IDs”): All Listed Companies All Public Companies having a. Turnover is Rs. 100 cr or more b. Aggregate Outstanding loans, debentures and deposits exceeds Rs. 50 […]
Appointment of an Independent Director 1. Call and convene meeting of Nomination and Remuneration Committee. The Nomination and Remuneration Committee of the Company shall with a due diligence select and recommend an Individual to be appointed as an Independent Director after ensuring that there is appropriate balance of skills, experience and knowledge. 2. As per […]
MCA has issued Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2020 which are applicable from 29th April 2020 and by this Registration of details of Independent Directors in Independent Directors Data Bank who were director on 1st December 2019 is been allowed till 30th June 2020. Revised rules now provide that Every individual who […]
Companies Act, 2013 section 150 introduces one to selection of independent director through a data bank maintained by any body, institute or association etc. Just now I passed with flying colors the self-assessment test conducted by Indian Institute of Corporate Affairs to join 1950 other qualified professionals who offer themselves as independent directors. The purpose […]
WHO IS AN INDEPENDENT DIRECTOR? Independent Director is Director other than a managing director or a Whole time Director or a nominee Director who fulfils all criteria as given in Section 149(6) along with Rule 4 and Rule 5 of the Companies (Appointment and Qualification of Directors) Rules, 2014. In general sense, an independent director […]
On 22nd October 2019 Ministry of Corporate Affairs (MCA) issued the Companies (Creation and Maintenance of databank of Independent Directors) Rules, 2019 regarding the creation and maintenance of databank of independent directors. These rules came into force on 1rst December 2019. Indian Institute of Corporate Affairs has been given the task to maintain the data bank. It will […]
Ministry of Corporate Affairs (MCA) vide its Notification number G.S.R. 804(E) dated 22nd October, 2019 had amended the Companies (Appointment and Qualification of Directors) Rules for Registration of Independent Directors in the databank within 3 months effective from 1st December, 2019 by applying online to the Indian Institute of Corporate Affairs (IICA). With effect from 28th […]
