corporate governance( CG)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2010 under ( CG)provisions sub-clause iii a to g of cl.49 of listing agreement defines Independent director.In cl iv it is written that nominee directors from public financial inst. under section 4A and banks are independent.
query: If a listed co. has signed an agreement with statutory body of state govt. and nominee director from that Body is appointed in our company, then whether he is consider to be Indepedent or Non-Indepedent ?

udit sharma

udit sharma (Expert)
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27 December 2010 Hi..

Under Clause 49 of the Listing Agreement, in explanation to definition of Independent Director it has been specifically provided that the nominee Director appointed by the Public Financial Institution which has invested money in or lent money to the Company or a Corresponding new Bank, shall be treated as Independent Director.

However coming to your query, nominee Director appointed by Statutory body of State Government in your Company may be Independent or non-Independent Director depending on the facts of the case. If the nominee Director of the Statutory Body passed all the 7 tests of the Independent Director as provided in the definition, then he will be a Non Executive Independent Director on the Board of Directors of your Company.

God Bless

Udit Sharma