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IICA is the institute authorized by the Ministry of Corporate Affairs to create and maintain the online databank of independent directors in India. The databank aims to build capacities, provide eLearning courses, and facilitate the selection of independent directors by companies.
Former Indian Army Chief. The independent director’s databank is an outstanding user friendly platform that empowers Independent Directors to fulfil their monitoring and advisory roles effectively. Good corporate governance is critical for accomplishing our national ‘Atamnirbhar’ mission.
May 26, 2021 · Learn about the role and criteria of an independent director in a company under the Companies Act, 2013. Find out the number, qualifications, remuneration, term and reappointment of independent directors in India.
- Independent Director
- Applicability on Appointing An Independent Director
- Qualifications of An Independent Director
- Role of An Independent Director
- Conduct of An Independent Director
- Duties of An Independent Director
- Other Provisions Related to Independent Directors Under Companies Act, 2013
An independent director is a non-executive directorof a company who helps the company in improving corporate credibility and governance standards. The independent director should not be a managing director, a whole-time director or a nominee director. He or she does not have any kind of relationship with the companythat may affect the independence ...
Listed Public Company
Every listed public company must have at least one-third of a total number of directors as independent directors. Any fraction contained in that one-third shall be rounded off as one.
Unlisted Public Company
As per Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014, the following classes of companies must have at least 2 directorsas independent directors: 1. Public companies with paid-up share capital of Rs.10 crore or more. 2. Public companies with a turnover of Rs.100 crore or more. 3. Public companies with aggregate outstanding loans, debentures, and deposits, exceeding Rs.50 crore. Every independent director should give a declaration that he/she meets the criteri...
The person should possess appropriate experience, skills and knowledge in one or more fields of law, finance, management, marketing, sales, research, administration, technical operations, corporate...The relatives of an independent director should not -The person is not:The person should not have any financial relationship (other than remuneration as a director or having transaction not exceeding 10% of the total income) with company or any of its subsidiary, hold...Independent Director acts as a guide, coach, and mentor to the company. The role includes improving corporate credibility and governance standards by working as a watchdog and help in managing risk. Independent directors are responsible for ensuring better governance by actively involving in various committees set up by the company. The independent...
The independent directors must adhere to the code of conduct and fulfil their responsibilities in a professional and faithful manner. Such conduct in discharging their duties and fulfilling responsibilities will promote confidence in the investment community, especially minority shareholders and regulators. The Act provides the following guidelines...
Undertake appropriate induction and regularly update and refresh their skills, knowledge, and familiarity with the company.Attempt to attend company’s general meetings.Attempt to attend Board of Director's meetings and board committees meeting being a member.Have adequate knowledge about the company and the external environment in which it operates.Certain companies are required to form a Corporate Social Responsibility (CSR) Committee to formulate and monitor the CSR policy. The CSR committee should consist of at least three directors, inclu...Where a company is not required to appoint an independent director, it shall have in its CSR Committee two or more directors.The Independent director’s appointment process must be independent of the company’s management. An independent director can be selected from a data bank containing names, qualifications and addre...The appointment of the independent director must be approved by the company in a general meeting, and the explanatory statement annexed to the general meeting notice should indicate the justificati...Learn the definition, qualifications, duties and responsibilities of an independent director in a company under the Indian law. Find out the criteria of independence, remuneration, tenure and reappointment of independent directors.
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Mar 4, 2024 · Duties of an Independent Directors . The guidelines, role, functions and duties of an Independent Director is defined in the Code of conduct under Schedule IV related to the Companies Act, 2013. The key role and functions of an Independent Director as listed under Schedule IV of the Companies Act, 2013 are described as follows:
Apr 12, 2020 · Learn who is an independent director, which companies are required or exempted to appoint one, and what are the roles, functions, duties and tenure of an independent director in India. Find out the eligibility criteria, appointment process and disclosure requirements for independent directors under the Companies Act 2013 and Rules.
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