Simply put, the person appointed as an independent director has no direct or indirect connection to the company. (b) to review the performance of the company`s president in light of the views of executive directors and non-executive directors; The amended clause 49 of the list agreement defines an independent director appointing a non-executive director, with the exception of a designated director, who has certain criteria set out in the list agreement and which, for the most part, are similar to those of the law and rules. In addition to the criteria of the law and rules, the rating agreement stipulates that an independent director or a close person may not be a supplier of equipment, a service provider or a customer or a lessor or a taker of the company. In addition, it has been imposed on an age qualifier that the independent director will be no less than 21 years old. It is worth noting that the 21-year term is only prescribed by law for the duration of directors, directors and directors.6 It appears to be a flagrant omission by Parliament. In addition, the Act11 provides that, although an independent director is not authorized to serve more than two consecutive terms, that independent director may be reconquered after a three-year period during which he ceases to become an independent director. A combined reading of this provision, accompanied by a clarification from McA, regulates the position that a person must leave office after two successive terms, even if the total number of years of appointment during those two consecutive terms is less than ten years. However, it can be reconsidered at the end of the three-year cooling-off period. Appointed directors, although not considered « independent » by the new definition, would nevertheless be eligible for immunity until they are executive. Although the rules5 impose certain criteria in addition to those provided by law, they require the independent director to have appropriate skills, experience and knowledge in one or more areas of finance, law, management, distribution, marketing, management, research, corporate governance, technical operations or other business-related disciplines. In India, the seriousness of independent directors (called « identifiers ») has been recognized by the introduction of corporate governance.
The Companies Act, 1956 (called « Law, 1956 ») does not speak directly of ID, as there is no such provision for mandatory designation of IDs to the Board of Directors. However, Section 492 of the listing agreement, which applies to all listed companies, provides for the appointment of identifiers to the Board of Directors. The need to update the law and its overall compliance and importance in the context of investor protection and client interest was felt. 1. The performance of independent directors is assessed by the entire board of directors, with the exception of the director`s assessment. With regard to the criteria for the financial relations of directors of listed companies, the September amendment now provides for a greater « substantial increase ». » It appears that this is a dilution of the provision for listed companies, which must be added to the fact that the mcA clarification does not apply to listed companies and that the arm length exemption does not apply to listed companies. However, no matter has been defined or based on the reasons why this addition came into effect. However, this definition can be attributed to the report of Dr. J.J. Irani`s Committee of Experts in Corporate Law (« Report ») of May 31, 2005. In 2005, a panel of experts chaired by Dr.
J.J. Irani (« Committee ») examined the concept of independent directors in the governance debate of management and the board of directors. The report outlines certain conditions in the definition of independent directors, one of which was that the independent director should not have a material financial relationship with the company, project proponents, directors, management, holding company, subsidiary and associated companies.