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No proposal for any upper cap on the number of independent directors

Last updated: 10 March 2010


No proposal for any upper cap on the number of independent directors

The Companies Bill, 2009 has not proposed any upper cap on the number of independent directors, but, sub-clause (3) of clause 132 of the Companies Bill, 2009 provides that at least one-third of total directors shall be independent directors to be appointed in every listed company having certain amount of paid up capital to be prescribed by the Central Government. Giving this information in written reply to a question in the Lok Sabha, Shri Salman Khurshid, Minister of Corporate Affairs, informed the House that clause 132 further provides that the Central Government may also prescribe the minimum number of independent directors in case of other public companies and subsidiary(s) of a public company. .

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