Question

In order to call any person as independent director, the relatives of such person should not have had any pecuniary relationship with the company or its subsidiaries, amounting to______of its gross turnover or total income or_______or such higher amount as may be prescribed, whichever is less, during the two immediately preceding financial years or in the current financial year;

• A. 1% or more;Rs. 25 lakhs
• B. 2% or more; Rs. 50 lakhs
• C. 5% or more; Rs. 50 lakhs
• D. 5% or more; Rs. 25 lakhs

Answer 1

Answer: (B)

2% or more; Rs. 50 lakhs

As per section 149(6)(d), none of whose relatives has or had pecuniary relationship or transaction with the company, its holding, subsidiary or associate company, or their promoters, or directors, amounting to two per cent. or more of its gross turnover or total income or fifty lakh rupees or such higher amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year.