Sona is a director elected by small shareholders of Rupa Ltd. In this matter, with reference to the provisions of Companies Act, 2013: (i) Explain whether a director elected by small shareholders is eligible to be appoin

Section 151 of the Companies Act, 2013 provides that the Appointment of director elected by small shareholders may be made in a listed company. A listed company may have one director elected by such small shareholders in such manner and with such terms and conditions as may be prescribed. Explanation.—For the purposes of this section 'small shareholders' means a shareholder holding shares of nominal value of not more than twenty thousand rupees or such other sum as may be prescribed. (i) The Director elected by small shareholders is eligible to be appointed as an independent director. Rule 7(4) of the Companies (Appointment and Qualification of Directors) Rules, 2014 provides that the director elected by small shareholders shall be considered as an independent director subject to, his being eligible under sub-section (6) of section 149 and his giving a declaration of his independence in accordance with sub-section (7) of section 149 of the Act.