An Independent director is a\npart of the board of directors of a company that does not have any relation to\nthe company related to material, or pecuniary matters of the Company. They\ncharge their sitting fees and are those who are not in the whole-time\nemployment of the Company. However, the management seeks guidance in a\nprofessional capacity for making decisions from the Independent Director.<\/p>\n\n\n\n
They are appointed in the Board\nto evaluate the performance of the non-independent Director of the Company, to\nshare their knowledge in the respective areas of their expertise, and they are responsible\nfor the better compliance. They act as a trustee of Shareholders and sometimes\nthey also work between the Board and other stakeholders.<\/p>\n\n\n\n
Any individual can become an Independent Director, if he meets the criteria prescribed under section 149(6) of the Companies Act, 2013<\/strong>[1]<\/a><\/sup>.<\/p>\n\n\n\n Every listed public company\nshall have at least one-third of the total number of directors as Independent\nDirector of the Company and the following classes of the Companies are required\nto appoint at least two directors as an Independent Director <\/p>\n\n\n\n The provisions of the appointment of the Independent Director<\/a><\/strong> do not apply to private companies. However, if companies to safeguard the interest of their shareholders and to attract the investors, they can appoint the Independent Director on Board.<\/p>\n\n\n\n The mandate of an Independent Director is as follows;<\/strong><\/p>\n\n\n\n Also Read:<\/b> Role of the Independent Directors in India<\/a><\/mark>.<\/p><\/div>\n\n\n\n The Independent Director shall:<\/strong><\/p>\n\n\n\n The Independent Director Shall:<\/strong><\/p>\n\n\n\n The Liability of Independent\nDirector will only be in respect of acts or omission or commission by a Company\nwhich had occurred with his consent or where he had not acted diligently.<\/p>\n\n\n\n It plays a vital role in the\nmanagement, appointing an Independent Director helps the Company in improving\nthe policies which apply to the Company, transparency, credibility of the\nCompany, and many more factors. They decide on an independent basis<\/a>;\nIndependent Director does not have any relationship with the Company that may\naffect the independence of judgment.<\/p>\n\n\n\n
\nAn independent Director to a Company means a Director other than a Managing Director or a whole-time director or nominee director who fulfills the criteria as given under section 149(6).<\/div>\n\n\n\nWhich Class of Companies are\nRequired to Appoint the Independent Director of the Company?<\/h2>\n\n\n\n
Tenure of an Independent\nDirector<\/h2>\n\n\n\n
Role and Functions of\nIndependent Director<\/h2>\n\n\n\n
Duties of Independent\nDirector<\/h2>\n\n\n\n
Procedure for Appointment of\nIndependent Director<\/h2>\n\n\n\n
Separate Meetings<\/h2>\n\n\n\n
Liability of Independent\nDirector<\/h2>\n\n\n\n
Conclusion:<\/h2>\n\n\n\n