‘A person can serve as an independent director on the boards of a maximum 7 listed companies and a maximum of 3 listed companies in case the person is serving as a whole time director in a listed company’ says SEBI. What does this mean?
SEBI has recently announced new Corporate Governance norms with reference to independent directors. Besides mandating a woman director on each board, SEBI has now stipulated that a person can serve as an independent director on the boards of a maximum 7 listed companies and a maximum of 3 listed companies in case the person is serving as a whole time director in a listed company.
According to Pranav Haldea, managing director, PRIME Database, which runs www.indianboards.com, a joint initiative of PRIME Database and NSE, “this would mean that 97 persons would have to resign from 283 independent directorship positions in NSE-listed companies by 1st October 2014…This is a welcome move as independent directors would now be able to spend more time on a company.”
The person with the maximum number of directorships in listed companies is Mr Pradip Kumar Khaitan with 14 directorships.
Maximum Number of Directorships in companies listed on NSE & BSE
Director Name | No.of |
MR.PRADIP KUMAR KHAITAN | 14 |
MR.ANIL HARISH | 13 |
MR.DILIP JAYANTILAL THAKKAR | 13 |
MR.RAJENDRA AMBALAL SHAH | 13 |
MR.SANJAY KHATAU ASHER | 13 |
MR.BANSIDHAR SUNDERLAL MEHTA | 12 |
MR.NASSER MUKHTAR MUNJEE | 11 |
MR.PRADIP PANALAL SHAH | 11 |
MR.SRINIVASAN NATESAN | 11 |
MR.AMBALAL CHHITABHAI PATEL | 10 |
MR.BALAJI RAO JAGANNATH RAO DOVETON | 10 |
MR.BRIJ BEHARI TANDON | 10 |
MR.HAIGREVE PRADIP KUMAR KHAITAN | 10 |
MR.JAYANT NARAYAN GODBOLE | 10 |
MR.RADHA KRISHNA PANDEY | 10 |
MR.SURESH NARSAPPA TALWAR | 10 |
Source: indianboards.com
According to Mr Haldea “what is welcome is that SEBI has at least prescribed that if a person has already served as an Independent Director for 5 years or more in a listed company (as on 1 October 2014), he shall be eligible for appointment for only one more term of 5 years.”
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