Clarifications on Rules prescribed under the Companies Act, 2013 Matters relating to appointment and qualifications of directors and Independent Directors reg.

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..... 014 To All Regional Directors, All Registrars of Companies, All Stakeholders. Subject: Clarifications on Rules prescribed under the Companies Act, 2013 Matters relating to appointment and qualifications of directors and Independent Directors reg. Sir, Government has received representations from Industry Chambers, Professional Institutes and other stakeholders seeking clarifications inter .....

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..... price as is payable/paid by such member of public would attract the bar of `pecuniary relationship' under section 149(6)(c). The matter has been examined and it is hereby clarified that in view of the provisions of section 188 which take away transactions in the ordinary course of business at arm's length price from the purview of related party transactions, an `ID' will not be said to .....

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..... the members, in accordance with the provisions of the Act. (ii) Section 149: Appointment of 'IDs' : Clarification has been sought if 'IDs' appointed prior to April 1, 2014 may continue and complete their remaining tenure, under the provisions of the Companies Act, 1956 or they should demit office and be re-appointed (should the company so decide) in accordance with the provisions .....

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..... Appointment of 'IDs' for less than 5 years:- Clarification has been sought as to whether it would be possible to appoint an individual as an ID for a period less than five years. It is clarified that section 149 (10) of the Act provides for a term of "upto five consecutive years" for an `ID'. As such while appointment of an `ID' for a term of less than five years would b .....

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..... 9; to be formalized through a letter of appointment, clarification has been sought if such requirement would also be applicable for appointment of existing 'IDs'? The matter has been examined. In view of the specific provisions of Schedule IV, appointment of 'IDs' under the new Act would need to be formalized through a letter of appointment. This issues with the approval of the c .....

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