Question

Independent directors appointment shall be approved by __________.

• A. board meeting
• B. shareholder meeting
• C. committee meeting
• D. auditors meeting

Answer 1

The correct option is B shareholder meeting

An independent director is a non-executive director of a company who helps the company in improving corporate credibility and governance standards. He/ She does not have any kind of relationship with the company that may affect the independence of his/ her judgment. Para IV of Schedule IV of Act, 2013 requires the appointment of the independent directors to be approved by at the meeting of the shareholders for which a notice has to be served with an explanatory statement containing the opinion of the Board that independent director proposed to be appointed fulfills all the conditions set down in the Act, 2013 and Rules