Independent director
This query is : Resolved
21 December 2015
Dear All,
Section 149(4) read with rule 4(1) of Companies (Appointment and qualification of director)rules 2014 says every unlisted public company shall have at least 2 independent director in the BOD if they cross any of the 3 the threshold limit given in the rule.
However proviso to rule 4 also says that company need not appoint Independent director if they ceases to fulfill any of 3 conditions laid down in rule4(1) for 3 consecutive years.
After combined reading of both, Can it be said that company need to comply with the provision only if all the 3 limits are crossed?
Please clarify.
Thanks in advance!!!!
Section 149(4) read with rule 4(1) of Companies (Appointment and qualification of director)rules 2014 says every unlisted public company shall have at least 2 independent director in the BOD if they cross any of the 3 the threshold limit given in the rule.
However proviso to rule 4 also says that company need not appoint Independent director if they ceases to fulfill any of 3 conditions laid down in rule4(1) for 3 consecutive years.
After combined reading of both, Can it be said that company need to comply with the provision only if all the 3 limits are crossed?
Please clarify.
Thanks in advance!!!!
21 December 2015
No..Company will be liable to appoint ID when any of three limits are crossed.
You have missed to consider this sentence in proviso '...until such time as it meets any of such conditions'.
After considering this sentence, you can see that after 3 years, if any of three conditions are fulfilled, the Company is again required to comply with this provision.
You have missed to consider this sentence in proviso '...until such time as it meets any of such conditions'.
After considering this sentence, you can see that after 3 years, if any of three conditions are fulfilled, the Company is again required to comply with this provision.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- TDS on property - Form 141 query
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- ITR-3 File/Error Found
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
