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Board meeting

22 August 2019

meeting of the Board may be called at shorter notice to transact urgent business subject to the condition that at least one independent director, if any, shall be present at the meeting.... why atleast one independent director should be present??

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Chirag (Professional) (1979 Points)
Replied 23 August 2019

For Certain Classes of companies and for all listed companies, Independent directors are essential as they provide independent insights /critical review about what is going on in a company ,As the word suggest "To transact Urgent Business ",So when company have I/D who are obliged to provide his judgement, specially in case of Urgent business, his nod is required, Either he should attend the meeting or if not attend then such resolution will be circulated to him for their Ratification.. Now law is clear in second part (when he don't attend), but not in first one (when he attend), So it conclsuion can be drawn that he should attend the meeting, Whether during voting he is in favour or not? when majority of director present during meeting gives their assent!!