Please Help: corporate law

Posted Date : 28-Jan-2012 , 04:10:27 pm | Posted By irfan ansari

some can describe the independent director?

Category : Corporate Law | Answers : 3 | Comments : 3 | Hits : 373

Answers

Answer By: Akanksha Handa

According to the Companies Bill, 2011 an independent director is a director other than a managing director or a whole-time director or a nominee director, who is not a promoter and who fulfils certain conditions specified in the Bill. Primarily he/she does not have any pecuniary relationship with the company or he/she, with relatives, does not hold more than two percent of the voting power of the company. The Bill describes an independent director as a person of integrity, who possesses relevant expertise and experience.

Answer By: Rambabu Senkarasetti

I agree with above answer.

Answer By: Rambabu Senkarasetti

I agree with above answer.

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Deepa Jain

30-Jan-2012 , 03:28:54 pm

Independent director as per Clause 49 of the Listing agreement shall mean non-executive director of the company who— (a) 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 the independence of the director; (b) is not related to promoters or persons occupying management positions at the Board level or at one level below the Board; (c) has not been an executive of the company in the immediately preceding three financial years; (d) is not a partner or an executive or was not partner or an executive during the preceding three years, of any of the following:— (i) the statutory audit firm or the internal audit firm that is associated with the company; (ii) the legal firm(s) and consulting firm(s) that have a material association with the company. (e) is not a material supplier, service provider or customer or a lessor or lessee of the company which may effect the independence of the director; and (f) is not a substantial shareholder of the company, i.e. owning two percent or more of the block of voting shares.