For listed companies 1/3 rd of total number of directors have to be independent
For this 1/3rd do we include nominee and additional directors?
Please help
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Independent directors
Replies (4)
additional director can act as an independent director
The independent Directors are appointed as the additional Directors in the Board meeting and such additional independent Directors are counted in the total number of 1/3 of Directors. Nominee Directors are usually appointed by Banks, Investing Companies and financial institution by virtue of their contracct or agreement. they are usually appointed as non executive Directors , so if the articles of such Company mentions that such Directors are appointed as Non Executive Independent Director they are counted in total of 1/3 of Directors
for nominee director you have to verify appointment terms first.
Actually I wanted to ask that in a listed company there are 15 directors including 2 additional directors (non independent), 1 Small Shareholder Director and 1 nominee Director.
Now which director we include for calculating 1/3rd limit
Is it 1/3rd of 15 or 14 or 13 or likewise and why
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