Dear All
As per Section 2(47) of the new Companies Act, 2013 as notified on 30.08.2013 says that “independent director” means an independent director referred to in sub-section (5) of section 149”.
Whereas when we read sub section (5) of section 149, it says Every company existing on or before the date of commencement of this Act shall, within one year from such commencement or from the date of notification of the rules in this regard as may be applicable, comply with the requirements of the provisions of sub-section (3).
Such sub section (5) is not talking about Independent Director. However sub section (6) of section 149 deal with the provision of Independent Director.
So as per my view there is misrepresentation of sub section in sub section 2(47) of the Companies Act, 2013 which defined Independent Director.
Please share your views thereon.
CAclubindia
