CA FINAL AUDIT LODR

Questions › Category: CA-Final Corporate Governance › CA FINAL AUDIT LODR

Ekansh Airon asked 3 years ago

Sir in Regulation 17a of SEBI LODR 2015, it is provided that an independent director cannot be WTD/MD in more than 3 entities. However, as per companies act, 149(6)(a), ID cannot be WTD/MD at all .So, why does this clause in reg 17A still exist, isn’t it redundant?

1 Answers

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Ravi Staff answered 3 years ago

read carefully and also think whether interpretation looks logical
person to be considered as eligible to become independent director of a PARTICULAR COMPANY should not be MD / WTD etc of THAT COMPANY
he can be MD / WTD etc in other companies