Independent trustees tenure limits and cooling-off requirements reinforce mutual fund governance and auditor independence. The circular limits service of independent trustees and independent directors to two terms of up to five consecutive years with a three-year cooling-off and no association during that period; existing incumbents are capped at ten years with transitional allowances. It similarly restricts appointment of a mutual fund auditor to two terms of up to five consecutive years with a five-year cooling-off, bars incoming auditors linked by common partners or network affiliation to the outgoing firm during cooling-off, and applies equivalent transitional caps and allowances.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Independent trustees tenure limits and cooling-off requirements reinforce mutual fund governance and auditor independence.
The circular limits service of independent trustees and independent directors to two terms of up to five consecutive years with a three-year cooling-off and no association during that period; existing incumbents are capped at ten years with transitional allowances. It similarly restricts appointment of a mutual fund auditor to two terms of up to five consecutive years with a five-year cooling-off, bars incoming auditors linked by common partners or network affiliation to the outgoing firm during cooling-off, and applies equivalent transitional caps and allowances.
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