Amendment in Schedule IV of the Companies Act, 2013
Ministry of Corporate Affairs vide its notification dated 05th July, 2017 brought out the following amendments in Schedule IV to amend the existing Code for Independent Directors:
1. In paragraph III, in sub-para (12), for the words "acting within his authority", the words "act within their authority" shall be substituted subsequently it must be read as:-
“The independent directors shall act within their authority, assist in protecting the legitimate interests of the company, shareholders and its employees.”
2. In paragraph VI, sub-para (2), for the words "a period of not more than one hundred and eighty days", the words "three months" shall be substituted subsequently it must be read as:-
“An independent director who resigns or is removed from the Board of the company shall be replaced by a new independent director within three months from the date of such resignation or removal, as the case may be.”
3. In paragraph VII, in sub-para (1), for the words "in a year", the words "in a financial year" shall be substituted and subsequently it must be read as:-
“The independent directors of the company shall hold at least one meeting in a financial year, without the attendance of non-independent directors and members of management”
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