Independent director independence: professional service providers and material pecuniary ties treated as associates, requiring reclassification and disclosure. Persons providing professional services to, or having material pecuniary relationships with, a mutual fund, AMC, trustee company or sponsor shall be treated as associate directors and not independent. Trustees must assess materiality of pecuniary ties. Existing directors must be classified as independent or associate and SEBI informed if board composition fails to meet independent-director requirements, with proposed remedial steps. The director bio-data format must add queries on professional services and pecuniary relationships, include an independent-director declaration on absence of material pecuniary ties, and the cooling-off provision applies.
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 director independence: professional service providers and material pecuniary ties treated as associates, requiring reclassification and disclosure.
Persons providing professional services to, or having material pecuniary relationships with, a mutual fund, AMC, trustee company or sponsor shall be treated as associate directors and not independent. Trustees must assess materiality of pecuniary ties. Existing directors must be classified as independent or associate and SEBI informed if board composition fails to meet independent-director requirements, with proposed remedial steps. The director bio-data format must add queries on professional services and pecuniary relationships, include an independent-director declaration on absence of material pecuniary ties, and the cooling-off provision applies.
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