Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Term of Independent Directoe

03 February 2020

As per CA ID can be appointed for a term of 5 years and two consecutive term. what if he complete his first term and opts not to offer himself for reappointment. After 2 months can he be reappointed on same capacity.

Reply
Follow
Share

3 Replies

Vivek Mishra (53 Points)
Replied 05 February 2020

Dear Vishal,

In my opinion he can not be appointed without a cooling period of 3 years because if we give proper weight to the word used therein section 149(10) "2 consecutive terms" and in the present scenario you are saying, is not a consecutive term.

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Vishal Totla (3 Points)
Replied 05 February 2020

What about his second term. He has completed his first term and resigned due to his personal reason. After 2 months he informed that he is available for appointment and board want to appoint him as ID. In this case does he has observe cooling period.

Vivek Mishra (53 Points)
Replied 05 February 2020

My emphasis on the word "Consecutive" given in section 149 sub section (10).
I think if there is a gap, he can not be said to be consecutively reappointed.

2 Like