Chaiman of the company
This query is : Resolved
13 February 2017
Dear Sir,
Whether an Independent Director can be appointed as the Chairperson of the Company. If Yes, then, Whether Shareholders approval required to designate him as Chairperson of the Company?
Thanks
Whether an Independent Director can be appointed as the Chairperson of the Company. If Yes, then, Whether Shareholders approval required to designate him as Chairperson of the Company?
Thanks
CS Mitesh Mehta
(Expert)
13 February 2017
No
The chairman has a general responsibility to oversee the functioning of the board and to ensure that all matters properly to be considered by the board are in fact brought before it. The chairman should have extensive involvement with the chief executive in order to be appropriately familiar with what is happening in the company.
Whereas role of independent director is limited to Scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance. He is not extensively involved in day to day functioning of the company.
The chairman has a general responsibility to oversee the functioning of the board and to ensure that all matters properly to be considered by the board are in fact brought before it. The chairman should have extensive involvement with the chief executive in order to be appropriately familiar with what is happening in the company.
Whereas role of independent director is limited to Scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance. He is not extensively involved in day to day functioning of the company.
13 February 2017
Thank you Sir for your reply.
Whether Companies act or Listing regulations restrict an Independent Director to become a Chairperson ??
Whether Companies act or Listing regulations restrict an Independent Director to become a Chairperson ??
CS Mitesh Mehta
(Expert)
13 February 2017
No there is no such provisions. However check the Articles of Association of the Company for provisions relating to appointment of chairman of the company.
CS Mitesh Mehta
(Expert)
13 February 2017
Further as per the CODE FOR INDEPENDENT DIRECTORS (As per SCHEDULE IV of Companies Act, 2013), an Independent director shall review the performance of the Chairperson of the company, taking into account the views of executive directors and non-executive directors at the separate meeting of independent director
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