Director residency requirement mandates a resident director in India, and refines independence disqualifications with de minimis exceptions. Amendment revises director residency and independence criteria under section 149: mandates a resident director for a specified portion of the financial ... Summary
Director residency requirement mandates a resident director in India, and refines independence disqualifications with de minimis exceptions.
Amendment revises director residency and independence criteria under section 149: mandates a resident director for a specified portion of the financial year with proportional application for new companies; clarifies that routine remuneration or limited transactions below prescribed thresholds do not disqualify independence; sets permissible caps on relatives' holdings, indebtedness, guarantees and other pecuniary transactions with the company or its group; and excepts certain prior employment of a relative from the disqualification test.
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