DIRECTORS OF A COMPANY. — SPCC STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceSPCCDIRECTORS OF A COMPANY.2 Marks
Question
How is an independent director selected?
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Answer
1 / 3rd of the director in the company are permanent independent director. They are not eligible for retirement.
About 1/3 of senior directors retire from 2 / 3rd of the administrators each year. In their place, the elected representatives of the shareholders become representative in the Board of Directors, who have a fixed term of 3 years.
As mentioned above, 2/3 of 2 administrators are selected as independent administrators after 3 years.
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