Question

An independent director is appointed for 4 years in first term and is again appointed for five years in second term. What is true?

• A. He can be appointed for another one year as his total member of years is 9 years only
• B. He cannot be appointed for third term
• C. He cannot be appointed for less than 5 years in first term
• D. None of the above

Answer 1

Answer: (B)

He cannot be appointed for third term

An Independent Director shall not be liable to retire by rotation in terms of the provisions of Companies Act, 2013. An Independent Directors will serve for not more than two terms of five years each on the Board of the Company subject to the maximum tenure of ten years as prescribed under the Companies Act, 2013.