Independent Director

Others 1490 views 4 replies

Shweta

Service

68 Points Joined February 2008

Dear All,

Can u plz help me out in this...

Suppose X (Professional)holds membership in board of directors of a
listed company as an independent director. He is rendering
professional services to the company and charging professional
services... Will this effect his independence to the board... (Both
Listing and Companies Act) point of view.

If not affecting his independence, what are limits for managerial
remuneration... Whether these limits also applies to professional fees
charged for professional services rendered.

With Regards

Shweta Maheshwari

Replies (4)

CA. A. Kumar

Associate Consultant

2362 Points Joined June 2008

YOU CAN REFER SECTION 314 OF COMPANIES ACT.

v. radhakrishnan

company secretary

29 Points Joined June 2008

Clause 49 of the listing agreement specifies that a person to be an independent director - apart from receiving director’s remuneration, does not have any material pecuniary relationships or transactions with the company, its promoters, its directors, its senior management or its holding company, its subsidiaries and associates which may affect independence of the director;

Since the director is rendering professional services to the company having pecuniary relationship, for which he will be receiving professional charges, can not be treated as an independent director.

Rekha Sharma

Company Secretary

167 Points Joined May 2008

I am 100% agree with V.Radhakrishna .Professional fees paid to such independent non executive/executive directors outside the purview of managerial remuneration , if the director rendering such services possess requisite qualification required to perform such services .

Guest

457605 Points Joined August 2012

01) Is part time practice allowed for CAs? If so what is the procedure? 02) Is there any forum, wherein you enroll yourself for appointment as Indepedent Director in companies who are willing to appoint persons with industry and business process experience on the Board