Independent directors’ requirements altered

0
12

The Ministry of Corporate Affairs through a notification dated 5 July granted an exemption to unlisted public companies which are joint ventures, wholly owned subsidiaries and dormant companies from being required to have at least two independent directors on their board at all times. The notification also updated the form DIR-5 to be filed for surrender of the director identification number.

Also on 5 July, the MCA amended the code of conduct for independent directors such that upon resignation/removal of an independent director from a board, a new independent director should be appointed within three months from the date of resignation/removal and not within 180 days, as prescribed earlier.