Authorization to indepedent director for day to day activity

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Law Aspire (Querist)
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01 August 2017 In a real estate Private limited Company , a person is appointed as a non-executive independent Director.
Whether Board of Directors can authorize him for signing and execution of Sale Deed of Properties of the Company?

RICHA KUMAR

RICHA KUMAR (Expert)
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01 August 2017 Yes board can appoint him for signing and execution of sale deed!

RICHA KUMAR

RICHA KUMAR (Expert)
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01 August 2017 A normal board resolution is need to pass

Law Aspire

Law Aspire (Querist)
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02 August 2017 But this will mean that he is involved in day to day activities of the Company .
Then How he will Continue as Independent Director

RICHA KUMAR

RICHA KUMAR (Expert)
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02 August 2017 It is a private company not a subsidiary of a public! So independent director definition as per the act will not be applicable further you can restrict his duties and role by entering into an agreement! For entering into this specific transaction this can be possible. But if it's a public listed company or a subsidiary of the same, then the act definition is applicable and he cannot enter into day to day activities

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