MCA vide Notification No. S.O. ………(E) on Wednesday, 5th July, 2017, has notified Amendment in Schedule IV of the Companies Act, 2013 which shall come into force on the date of publication in Official Gazette.
Vide said notification, following para of Schedule IV i.e. Code of Independent Directors has been amended:
- Duties – Para III (12): revised sub-para is as follows;
act within their authority (previously was “acting within his authority”), assist in protecting the legitimate interests of the Company, shareholders and its employees.
- Resignation or Removal – Para VI (2): vacancy of independent director shall be filled within 3 months from date of resignation or removal (previously was 180 days)
- Separate meetings – Para VII (1): meeting of independent directors shall be atleast 1 meeting in a financial year (previously was ‘in a year’)
- After Para VIII, a Note has been inserted which states various para and sub-para not applicable for Government Companies.
The said Notification can be accessed from the following link:ScheduleIVAmdt_05.07.2017