Residency requirement for directors tightened; revised independence and relative-transaction thresholds clarify disqualifications and exemptions under amendment The amendment requires a company to have at least one director who stays in India for not less than one hundred and eighty-two days in a financial year, applied proportionately for newly incorporated companies. It also revises independence disqualifications by excluding ordinary remuneration and small transactions from pecuniary relationships, permitting limited relative holdings of securities subject to prescribed caps, and setting prescribed thresholds for relatives' indebtedness, guarantees and other pecuniary transactions; an employment proviso exempts relatives employed during the preceding three financial years.
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Residency requirement for directors tightened; revised independence and relative-transaction thresholds clarify disqualifications and exemptions under amendment
The amendment requires a company to have at least one director who stays in India for not less than one hundred and eighty-two days in a financial year, applied proportionately for newly incorporated companies. It also revises independence disqualifications by excluding ordinary remuneration and small transactions from pecuniary relationships, permitting limited relative holdings of securities subject to prescribed caps, and setting prescribed thresholds for relatives' indebtedness, guarantees and other pecuniary transactions; an employment proviso exempts relatives employed during the preceding three financial years.
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