Consider the following statements with reference to Independent Director of a company

1. He/She represents minority shareholders in a company.
2. All listed public companies need to have at least one-third of the total Directors as Independent Directors.

Select the correct statement.

• An independent Director is a director on a board of directors representing minority shareholders. He/she does not have a pecuniary relationship with the company or related persons, except for sitting fees. 
• Their role is to take an unambiguously and independently stand to have a check and balance on the majority shareholders. It reduces exposure of the company to unwarranted risks. 
• As per the Companies Act, 2013 all listed public companies need to have at least one-third of the total Directors to be independent. 

Hence both statements are correct.

By: Shubham Tiwari