Question

D is appointed as full time director in, ABC Ltd. He can be appointed as independent director in Maximum ______ companies.

• A. 2
• B. 4
• C. 3
• D. 15

Answer 1

The correct option is C 3

Securities and Exchange board of India defines Independent Director as someone who does not have any material or financial relationship with the company or its directors. An independent director cannot be a managing director, a whole time director or a promoter of the firm or its executive directors which means that apart from receiving director’s remuneration these directors cannot have a pecuniary interest, relationships or transactions with the company. But a director can be appointed as independent director of less than equal to three companies.