Independent director eligibility rules expand to cover current-year compliance, related-company conflicts, and tenure calculation. Independent directors must satisfy the section 149(6) eligibility conditions during both the preceding and current financial year, with the professional relationship test amended to refer to secretarial auditors and a prescribed lower percentage threshold. The amendment also requires continuing compliance throughout the term of appointment, extends the related-company restriction to holding, subsidiary and associate companies, permits certain legal or consulting firm relationships below the applicable turnover threshold, and counts service as an additional director toward independent director tenure.
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Independent director eligibility rules expand to cover current-year compliance, related-company conflicts, and tenure calculation.
Independent directors must satisfy the section 149(6) eligibility conditions during both the preceding and current financial year, with the professional relationship test amended to refer to secretarial auditors and a prescribed lower percentage threshold. The amendment also requires continuing compliance throughout the term of appointment, extends the related-company restriction to holding, subsidiary and associate companies, permits certain legal or consulting firm relationships below the applicable turnover threshold, and counts service as an additional director toward independent director tenure.
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