Mr. Ram has completed two consecutive terms of five years as an independent director and after expiration of one year from cessation of the term as independent director, company wants to appoint him again as independent
CS Professional · Ethics, Governance and Sustainability · PYQS · June 2021
Mr. Ram has completed two consecutive terms of five years as an independent director and after expiration of one year from cessation of the term as independent director, company wants to appoint him again as independent director, whether he can be appointed for the same? Justify your answer.
Answer & Explanation:
As per the provisions discussed above, Mr. Ram cannot be appointed as Independent Director for the third term after expiration of one year from the cessation of two consecutive terms of five years. A cooling period of minimum three years is required for his re-appointment.
Topics: Corporate Governance
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