Question

Under the Companies Act, 2013, which of the following is correct with regard to the tenure and remuneration of an independent director of a company?

Q: Answer-Under the Companies Act, 2013, which of the following is correct with regard to the tenure and remun...

Explanation Section 14910 of the Companies Act, 2013 fixes the term of an independent director at up to five consecutive years with reappointment only by special resolution, and Section 14911 caps it at two consecutive terms. Section 1499 prohibits stock options, confining remuneration to sitting fees, reimbursement of expenses and profit-related commission approved by members.

A An independent director of a listed public company is appointed for a term of one year, renewable every year by the Board

B An independent director holds office for a term of up to five consecutive years and is eligible for reappointment only on the passing of a special resolution

C An independent director holds office for a term of three consecutive years and may be reappointed by an ordinary resolution of the Board

D An independent director is entitled, in addition to sitting fees, to stock options of the company

Practice Next