Today, let us start by understanding the time when an independent director (ID) is required to be appointed.
- Most public companies appoint independent directors ahead of their IPOs, or if they have reached the INR 10 crore paid-up capital/INR 100 crore turnover/ INR 50 crore debt threshold
- Companies may also need to appoint new independent directors upon the expiry of a term of an existing independent director, when such a director’s appointment is not renewed or cannot be renewed.
There are two broad ways of identifying independent directors – one is through professional executive search agencies, and the other is through the personal networks of the promoters and senior management.
Want to keep reading? It’s free to join
Create a free account to continue reading
