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Today General Knowledge(GK)
Who has introduced a new option for appointment and removal of independent directors from the boards of companies?
A)
RBI
B)
IRDA
C)
SEBI
D)
NSDL

Correct Answer : Option (C) - SEBI



Capital markets regulator Securities and Exchange Board of India (SEBI) has introduced a new option for appointment and removal of independent directors from the boards of companies, a move that will provide flexibility to such a process.
 
Under this, the appointment and removal of independent directors could be done by way of two parameters :  i)threshold for ordinary resolution, ii)threshold for majority of minority shareholders.
 
Currently, the appointment, re-appointment or removal of independent directors is made through a special resolution. For a special resolution to be passed, 75% of 'yes' votes are needed from a company's board.
 
To give these effects, SEBI has amended LODR (Listing Obligations and Disclosure Requirements) rules, according to a notification made public by the regulator on Tuesday(15th Nov 2022).
Under the alternate mechanism, if the special resolution for appointment of an independent director does not get the requisite majority, then two other thresholds—for ordinary resolution and for the majority of minority shareholders—would be tested.
 
If the resolution crosses the two above-mentioned thresholds in the same voting process, then such a resolution for appointment of the independent director would be deemed to be approved by shareholders..

Source : Money Life

Published On : November 18, 2022
Category : Business and Economics
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