Selection Committee requirement for relatives appointed to office or place of profit now mandates independent directors and outside expert approvals. The amendment increases the monetary threshold for a director's relative holding an office or place of profit and requires that selection and appointment of such a relative follow the same approval procedure as for non-relatives. For listed public companies selection must also be approved by a Selection Committee, defined to have a majority of independent directors and an outside expert; unlisted companies need an outside expert but not independent directors; private companies need neither.
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.
Selection Committee requirement for relatives appointed to office or place of profit now mandates independent directors and outside expert approvals.
The amendment increases the monetary threshold for a director's relative holding an office or place of profit and requires that selection and appointment of such a relative follow the same approval procedure as for non-relatives. For listed public companies selection must also be approved by a Selection Committee, defined to have a majority of independent directors and an outside expert; unlisted companies need an outside expert but not independent directors; private companies need neither.
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