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In order to call any person as independent director, he must not either directly or any of his relatives hold or has held the position of a key managerial personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of the _________ immediately preceding the financial year in which he is proposed to be appointed.

A

two financial years

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B

three financial years

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C

three calendar years

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D

two calendar years

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Solution

The correct option is C three financial years
As per section 149(6) (e) of the act, in order to call any person as independent director, he must not either directly or any of his relatives hold or has held the position of a key managerial personnel or is or has been employee of the company or its holding, subsidiary or associate company in any of the three financial years immediately preceding the financial year in which he is proposed to be appointed.

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