Section 149(4) read with rule 4(1) of Companies (Appointment and qualification of director)rules 2014 says every unlisted public company shall have at least 2 independent director in the BOD if they cross any of the 3 the threshold limit given in the rule. However proviso to rule 4 also says that company need not appoint Independent director if they ceases to fulfill any of 3 conditions laid down in rule4(1) for 3 consecutive years.
After combined reading of both, Can it be said that company need to comply with the provision only if all the 3 limits are crossed?
21 December 2015
No..Company will be liable to appoint ID when any of three limits are crossed. You have missed to consider this sentence in proviso '...until such time as it meets any of such conditions'.
After considering this sentence, you can see that after 3 years, if any of three conditions are fulfilled, the Company is again required to comply with this provision.
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