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Age limit for Independent Directors
What is the age limit for appointment of Independent Director beyond which he cannot be appointed? If the person so concerned surpasses the age limit can he still be appointed?
Replies (3)
Quick Summary
The age limit for Independent Director is 75 years
As per companies act 2013. age limit is 70 years (Sec 196)
Provided that appointment of a person who has attained the age of seventy years may be made by passing a special resolution in which case the explanatory statement annexed to the notice for such motion shall indicate the justification for appointing such person;
[Provided further that where no such special resolution is passed but votes cast in favour of the motion exceed the votes, if any, cast against the motion and the Central Government is satisfied, on an application made by the Board, that such appointment is most beneficial to the company, the appointment of the person who has attained the age of seventy years may be made.]
SEBI, in its board meeting held on June 21, approved an age limit of 75 years for PIDs, also known as independent directors, on the board of MIIs. Experts say the Companies Act does not curb the appointment of a PID on the board of a company after a certain age but prescribes that shareholder approval via a special resolution if the PIDs are 70 or above.
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