Audit committee of the comapny

This query is : Resolved

Amitabh Barooa (Querist)
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15 October 2013 Sir,
Please read the case as below,
One person has been nominated as an Independent Director of a Govt Company by the concern State Govt. That very person has been a Supplier of various goods as well as buyer of products from the same Company for a long time. Further, the said person has also been made a member of the Audit Committee by the Board. To the best of my knowledge, person having pecuniary relation with a company can not hold such position.
May I know your take on the subject and some more insight to this type of a situation. Is it legally tenable, as far as the new Company's Act is concern.
Thanking you,
Yours truly,
Amitabh Barooa
+919435048010

Ajay Mishra

Ajay Mishra (Expert)
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15 October 2013 Hi

As per my understanding such person will not be considered as Independent Director of the Company.

As per new Companies Act, 2013, the Independent Director has been considered in wider term.

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