Tenure of independent director in listed co
This query is : Resolved
22 November 2015
sir whats the tenure of independent director in listed co as per clause 49 listing agrrement
CS Mitesh Mehta
(Expert)
24 November 2015
As per Companies Act 2013, a person may be appointed as an ID for a term
upto 5 years, and then he may be reappointed for one more term upto years,on the strength of a special resolution. However, the revised Clause 49 of the Listing Agreement seems to provide for only one more term. The relevant clause reads:
Provided that a person who has already served as an independent director for
five years or more in a company as on October 1, 2014 shall be eligible for
appointment, on completion of his present term, for one more term of up to
five years only.
If one examines closely, there is no conflict between the requirements of the
Act and the Listing Agreement, if the directors are appointed before 1st
October 2014. Sure enough, the AGM of 2014 will be over before 1st October.
So, if the appointment is done before 1st October 2014, it becomes a “present
term” as on 1st October 2014, and therefore, the term of 5 years will start running only after the expiry of the “present term”.
upto 5 years, and then he may be reappointed for one more term upto years,on the strength of a special resolution. However, the revised Clause 49 of the Listing Agreement seems to provide for only one more term. The relevant clause reads:
Provided that a person who has already served as an independent director for
five years or more in a company as on October 1, 2014 shall be eligible for
appointment, on completion of his present term, for one more term of up to
five years only.
If one examines closely, there is no conflict between the requirements of the
Act and the Listing Agreement, if the directors are appointed before 1st
October 2014. Sure enough, the AGM of 2014 will be over before 1st October.
So, if the appointment is done before 1st October 2014, it becomes a “present
term” as on 1st October 2014, and therefore, the term of 5 years will start running only after the expiry of the “present term”.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reward for festival
- Employee secondment
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Ito add credit side of bank
- GSTR9 Annual Return
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Gift to nri relatives resides in usa
- Appointment of Auditor By Form ADT-1
- Rectification under processing even after 6 months cpc portal
- RCM and same line
- Upload Level ValidationITR3Category of Defect B/D
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- MSME Payment Sec.43B (h)
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
