{"id":424,"date":"2019-01-13T03:59:17","date_gmt":"2019-01-13T03:59:17","guid":{"rendered":"http:\/\/www.biatconsultant.com\/blog\/?p=424"},"modified":"2019-01-13T03:59:17","modified_gmt":"2019-01-13T03:59:17","slug":"is-independent-director-really-an-independent-person","status":"publish","type":"post","link":"https:\/\/www.biatconsultant.com\/blog\/is-independent-director-really-an-independent-person\/","title":{"rendered":"Is Independent Director really an independent person?"},"content":{"rendered":"

In the age of start-ups there are Directors who take up the charge of the company as they manage and controls the whole of the undertaking efficiently.<\/span><\/p>\n

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Directors are the representatives of the investors and ensures that the company is moving inna right direction to achieve its objectives. For every startup Board of Directors takes necessary steps to ensure that there is no mismanagement in the company.<\/span><\/p>\n

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Independent Director<\/b><\/p>\n

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Independent Directors are the Directors who are brought from outside to participate in Board Meeting of a company and must not be having any material or pecuniary interest in the Company. Only those who are not having any material or Pecuniary interest in the Company determined by the Board to Directors to become Independent Director of the Company. He is given sitting fees in the Board meetings of the Company.<\/span><\/p>\n

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Appointment of Independent Directors<\/b><\/p>\n

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Appointment of Independent Directors in a Listed and Unlisted Companies is very easy and the same is approves in the meeting of shareholders and Independent Directors are appointed as per the provisions under Companies Act, 2013 and they are as follows-<\/span><\/p>\n

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For Listed Companies- \u00a0<\/b>at least one third of the total Directors should be independent Directors.<\/span><\/p>\n

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For unlisted Companies- <\/b>\u00a0At least there should be two Directors who are Independent in case of unlisted companies.<\/span><\/p>\n