Examine the validity of the following: Sudarshan Chakraborty, aged 20, is appointed as independent director on the Board of BVS Scooters Limited, a listed company, by passing an ordinary resolution in the annual general
CS Executive · Company Law · PYQS · June 2024
Examine the validity of the following: Sudarshan Chakraborty, aged 20, is appointed as independent director on the Board of BVS Scooters Limited, a listed company, by passing an ordinary resolution in the annual general meeting.
Answer & Explanation:
According to Sec 149(6) of Companies Act, 2013 read with Regulation 25(2A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), an independent director of a listed company shall be appointed by passing a special resolution in the general meeting. According to Regulation 16(1)(b) of LODR the independent director shall not be less than 21 years of age. Hence, the appointment of Sudarshan Chakraborty, aged 20 is invalid on both counts.
Topics: Directors
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