Question

In order to call any person as independent director neither himself nor any of his relative is a chief executive or director, by whatever name called, of any non-profit organization that receives ______.or more of its receipts from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds ________ of the total voting power of the company.

• A. 15% or more; 2% or more
• B. 20% or more; 5% or more
• C. 15% or more; 5% or more
• D. 25% or more; 2% or more

Answer 1

The correct option is D 25% or more; 2% or more

As per section 149(6) of the act, in order to call any person as independent director neither himself nor any of his relative is a chief executive or director, by whatever name called, of any non-profit organization that receives twenty five or more of its receipts from the company, any of its promoters, directors or its holding, subsidiary or associate company or that holds two percent of the total voting power of the company.