Independent director as per companies act, 2013
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 April 2014
Dear Sir/MAdam,
my query is regarding appointment of Independent Director, exmpl:
X Ltd is a Listed Entity, Mr. A and B are the directors of X Ltd.and they are called Independent Directors, but they are also Director of 5 (Five) Associates Companies of X Ltd. a listed entity and they also take salary on Per month basis from one of the 5 associates Companies.
the above is the example so kindly confirm me from yours valuable opinion Mr. A and B are really Independent Director of a X Ltd. Listed entity.
my query is regarding appointment of Independent Director, exmpl:
X Ltd is a Listed Entity, Mr. A and B are the directors of X Ltd.and they are called Independent Directors, but they are also Director of 5 (Five) Associates Companies of X Ltd. a listed entity and they also take salary on Per month basis from one of the 5 associates Companies.
the above is the example so kindly confirm me from yours valuable opinion Mr. A and B are really Independent Director of a X Ltd. Listed entity.
SHAKTI JINDAL
(Expert)
17 April 2014
Taking salary from one of the companies indicates employment. As per section 149, if a persons holds position of employment in the company, holding subsidiary or associate company, the criteria of independence is not fulfilled. So, A & B shall cease to be independent directors.
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