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Question

An independent director can be appointed for a tenure up to ________

A 2 consecutive years Correct Answer Incorrect Answer
B 3 consecutive years Correct Answer Incorrect Answer
C 4 consecutive years Correct Answer Incorrect Answer
D 5 consecutive years Correct Answer Incorrect Answer
E No fixed term Correct Answer Incorrect Answer

Solution

Companies Act, 2013 - Section 149 – Company to have Board of directors Subject to the provisions of section 152, an independent director shall hold office for a term up to five consecutive years on the Board of a company, but shall be eligible for reappointment on passing of a special resolution by the company and disclosure of such appointment in the Board’s report. Note - No independent director shall hold office for more than two consecutive terms, but such independent director shall be eligible for appointment after the expiration of 3 years of ceasing to become an independent director.

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