Neo Engineering Ltd. is in the list of top 1000 listed entity on the basis of market capitalization. Based on the changes made in SEBI LODR, what would be the composition of the Board as on 1st April, 2019 and 1st April,
CS Executive · Securities Laws and Capital Markets · PYQS · December 2019
Neo Engineering Ltd. is in the list of top 1000 listed entity on the basis of market capitalization. Based on the changes made in SEBI LODR, what would be the composition of the Board as on 1st April, 2019 and 1st April, 2020? Explain.
Answer & Explanation:
As per the Regulation 17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, the composition of board of directors of the listed entity shall have optimum combination of executive and non-executive directors with at least one woman director and not less than fifty percent of the board of directors shall comprise of non-executive directors, provided that; Board of directors of the top 500 listed entities shall have at least one independent woman director by April 1, 2019 and the Board of directors or the top 1000 listed entities shall have at least one independent woman director by April 1, 2020. The board of directors of the top 1000 listed entities w.e.f. April 1. 2019 shall comprise of not less than six directors. With effect from April 1, 2020, the top 500 listed entities shall ensure that the Chairperson of the board of such listed entity shall - (a) be a non-executive director; (b) not be related to the Managing Director or the Chief Executive Officers as per the definition of the term 'relative' defined under the Companies Act, 2013 However this requirement shall not be applicable to the listed companies which do not have identifiable promoters as per the shareholding pattern filed with the stock exchange. The quorum for every meeting of the board of directors of the top 1000 listed entities with effect from April 1, 2019 shall be one-third of its total strength or three directors, whichever is higher, including at least one independent director. However, the participation of directors by video conferencing or by other audio-visual means shall also be counted for the purposes of such quorum.
Topics: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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