PQR Ltd to which appointment of Independent Director is applicable ceases to fulfill the conditions ...........

Companies Act-Phase (I & II) Directors - powers and appointment

PQR Ltd. to which appointment of Independent Director is applicable ceases to fulfill the conditions of applicability for 3 consecutive years; compliance with this section is …………..

not required until it again meets any of the condition

still required

is decided by the Company based on the circumstances

None of the above

छोटे Courses बड़े Results

Master Directors - powers and appointment

Prepare through Micro-courses

Try Now

Explanation:

Where a company ceases to fulfill any of three conditions and laid down in Rule of Companies (Appointment and Qualification of Directors) Rules, 2014 for three consecutive years, it shall not be required to comply with these provisions until such time as it meets any of such conditions. It is further clarified that the paid up share capital or turnover or outstanding loans debentures and deposits, as the case may be as existing on the last date of latest audited financial statements shall be taken into account. Third Proviso to Rule 4 of Companies (Appointment and Qualification of Directors) Rules,2014).