Exemption to Certain Unlisted Public Companies from Appointment of Independent Directors

By way of notification dated July 5, 2017, the MCA amended the Companies (Appointment and Qualification of Directors) Rules, 2014 inter-alia amending Rule 4 whereby an unlisted public company which is a joint venture, wholly owned subsidiary, or a dormant company, has been exempted from appointing independent directors. In this regard, the MCA has, by way of notification dated September 5, 2017 clarified that “joint venture” would mean a joint arrangement, entered into in writing, whereby the parties that have joint control of the arrangement, have rights to the net assets of the arrangement. The usage of the terms is similar to that under the accounting standards.

Published In:Inter Alia - Quarterly Edition - October 2017 [ English Chinese japanese ]
Date: October 1, 2017