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Yes, the appointment of an independent director for a term less than 5 years is permissible. However, any appointment whether of 5 or less will be regarded as ‘one term’. Section 149 clearly states that no person can hold office as an independent director for more than two consecutive terms. Thus, irrespective of the duration of each of th...
Wazzeer Professional Network
ProfessionalCan a Company appoint an independent director for a term of fewer than 5 years?
-
Wazzeer Professional Network
ProfessionalYes, the appointment of an independent director for a term less than 5 years is permissible. However, any appointment whether of 5 or less will be regarded as ‘one term’. Section 149 clearly states that no person can hold office as an independent director for more than two consecutive terms. Thus, irrespective of the duration of each of the two terms (whether the same aggregates to 10 years or less) a person holding office for two consecutive terms shall be eligible for re-appointment only after the expiry of three years after he ceases to hold the office as the independent director.
In case you need any assistance in legal or accounting or secretarial services, things can be consulted and delivered seamlessly on Wazzeer platform -> "Get Started!"
over 2 years ago
View answer
Can a Company appoint an independent director for a term of fewer than 5 years?
-
Wazzeer Professional Network
ProfessionalYes, the appointment of an independent director for a term less than 5 years is permissible. However, any appointment whether of 5 or less will be regarded as ‘one term’. Section 149 clearly states that no person can hold office as an independent director for more than two consecutive terms. Thus, irrespective of the duration of each of the two terms (whether the same aggregates to 10 years or less) a person holding office for two consecutive terms shall be eligible for re-appointment only after the expiry of three years after he ceases to hold the office as the independent director.
In case you need any assistance in legal or accounting or secretarial services, things can be consulted and delivered seamlessly on Wazzeer platform -> "Get Started!"
over 2 years ago
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