MINISTRY OF CORPORATE AFFAIRS: NOTIFICATION OF COMPANIES (APPOINTMENT AND QUALIFICATION OF DIRECTORS) SECOND AMENDMENT RULES 2018

The MCA vide its notification dated 7 May 2018 has amended Companies (Appointment and Qualification of Directors) Rules 2014 by Companies (Appointment and Qualification of Directors) Second Amendment Rules 2018 expanding the scope of qualifications of independent directors. Rule 5 (2) requires that none of the relatives of an independent director is indebted to the company, its holdings, subsidiary or associate company or their promoters, or directors or has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, its holdings, subsidiary or associate company or their promoters, or directors of such holding company, for an amount of Rupees Fifty Lakhs at any time during the 2 immediately preceding financial years or during the current financial year. Source: http://www.mca.gov.in/Ministry/pdf/AppointmentDirectorsRules_07052018.pdf

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