MCA exempts unlisted public joint ventures, wholly owned subsidiaries etc. from appointing Independent Directors
The Ministry of Corporate Affairs (“MCA”) has issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2017 (‘Amendment Rule’) effective 5th July, 2017.
As per this Amendment Rule, the following class or classes of Unlisted Public Company/ies will not be required to appoint at least two independent directors-
- The Amendment Rule has exempted the following class of Unlisted Public Companies from the requirement of having at least 2 independent directors in their Board.
a. AJoint Venture;
b. AWholly Owned Subsidiary;
c. ADormant Companyunder Section 455 of the Companies Act of 2013.
- Further,Form DIR-5, which is used for surrender of Director Identification Number (‘DIN’) has also been revised.