Ind. Directors - T&C On Website

Terms and Conditions of Appointment of Independent
Directors
Schedule IV to the Companies Act, 2013 provides for the Code for Independent Directors.
The appointment process of Independent Directors is independent of the company
management. During the selection process, the Board ensures that there is appropriate
balance of skills, experience and knowledge in the Board so as to enable the Board to
discharge its functions and duties effectively.
The appointment of Independent Director(s) of the Company is approved at the meeting of
the shareholders. The Board always ensures that the Independent Director proposed to be
appointed fulfils the conditions specified in the Act and the Rules made thereunder and that
the proposed director is independent of the management and a statement to that effect is
included in the explanatory statement attached to the notice of the meeting.
The terms and conditions for the appointment of the Independent Director are enumerated
below:
Appointment
The appointment is for a term of 5 (five) years commencing from the date of
appointment and ending (Termination Date) on 6th Annual General Meeting of the
Company following the date of appointment and shall not be liable to retirement by rotation.
Unless the appointment is renewed on or prior to the Termination Date, the appointment shall
come to an end on the Termination Date.
During the term of the appointment, the Independent Director may be asked to serve
on one or more of the Board Committees including Audit Committee, Nomination and
Remuneration Committee, Corporate Social Responsibility Committee or such committee of
the Board of the Directors from time to time.
Role and responsibility
As an Independent Director, he will be bound by the Code for Independent Directors

as mentioned under Schedule IV to the Companies Act, 2013.
As an Independent Director, he has the same general legal responsibilities to the

Company as any other Director including all fiduciary duties, responsibilities, statutory
obligations and liabilities of directors prescribed in law including the Companies Act, 2013.
The Board as such is collectively responsible for promoting the success of the
Company by directing and supervising the Companys affairs. The brief description of the
terms of reference of the Board of Directors are as follows:-
To manage and direct the business and affairs of the Company;
To act honestly and in good faith in the best interests and objects of the
Company, its employees, its shareholders, the community and for protection of
environment;
To exercise due care, diligence and skill that a reasonably prudent person
would exercise in comparable circumstances and shall also exercise independent
judgment;
To ensure congruence between shareholders expectations, Companys goals,

objectives and management performance;
To monitor the Companys progress towards its goals and to revise and alter
its direction in light of changing circumstances;
To ensure that the performance of the Company is adequately reported to

shareholders, other stakeholders and regulators on a timely and regular basis;
To ensure that any developments that have a significant and material impact
on the Company are reported from time to time to the concerned authorities;
Not to involve in a situation which may have a direct or indirect interest that
conflicts, or possibly may conflict with the interest of the Company;
Not to achieve or attempt to achieve any undue gain or advantage either to

himself or to his relatives, partners or associates and if such director is found guilty of
making any undue gain, he shall be liable to pay an amount equal to that gain to the
Company;
Not to assign his office and any assignment so made shall be void; and
In addition to the above responsibilities, the role of the Independent Directors shall also have
the following key elements: o
Strategy and Business Development: The Independent Director should

constructively challenge and contribute to the overall strategy and to the business
development initiatives of the Company by getting actively engaged with the
Company in making introductions to potential clients in the key service areas of the
Company;
Performance: The Independent Director should scrutinize the performance of

management in meeting agreed goals and objectives and monitor the reporting of
performance; and
Risk: The Independent Director should satisfy himself that financial

information is accurate and that financial controls and systems of risk management
are robust and defensible.
Other obligations and compliances

The Independent Director will be required to execute / confirm with respect to the following
documentation on a periodic basis:
Confirmation that he is not disqualified to act as a Director of the Company in terms

of the Companies Act, 2013
Declaration of Independence in terms of the Companies Act, 2013
Code of Conduct for Independent Directors as per Schedule IV of the Companies Act,
2013
Disclosure of change in interest in companies where he is appointed / ceased as a

Director or Key Managerial Personnel
Confirmation that his directorships in companies do not conflict with the interest of
the Company.
Remuneration
The Company is not paying any remuneration to its Independent Directors as they
have been appointed as non-executive directors of the company.
Other directorships and Business Interests
The Company acknowledges that Independent Director may have business interests in
other companies. In the event that he becomes aware of any potential conflicts of interests,
these should be disclosed to the Chairman and Company Secretary as soon as they become
apparent.
During the appointment, he should consult with the Chairman prior to accepting any
such other (or further) directorships of Indian companies or any major external appointments
which may affect his interest in the Company.
Confidentiality and Non-Disclosure
The Independent Director must apply the highest standards of confidentiality and not
disclose to any person or company (whether during the course of the appointment or at any
time after its termination) any confidential information concerning the Company and any
Group Companies (including wholly owned subsidiaries) with which he comes into contact
by virtue of his position as an Independent Director of the Company.
Any information concerning the Companys business, its customers, suppliers, etc.
which is not in public domain and to which all employees do not have access, should be
considered confidential for the purpose and should be held in confidence, unless authorised to
do so and when disclosure is required as a requirement of law.
The attention is drawn to the requirements under Indian regulations as to the

disclosure of price sensitive information. The Independent Director shall not provide any
information either formally or informally, to the press or any other publicity media without
prior written clearance from the Chairman or Company Secretary.
The examples of confidential information are, but not limited to the following:o
Business plan, annual operations plan
Performance against target
Costing, pricing, profitability, financial budget and related issues
Fees / stipend, evaluations, recommendations etc. related to any of the

employees of the Company
Sales commission, third party commission and about reference agents
Information about suppliers and/or customers
Proposed ventures and corporate plans
Technical marketing and financial strategies of the Company and/or its

customers
Core competencies and activities of the Company and/or its customers
Any other information, which is likely to be crucial for the business operations
On termination of the Appointment, the Independent Director will deliver to the

Company all books, documents, papers, and other property of or relating to business of the
company or any Group Company which are in their possession, custody or power by virtue of
their position as an Independent Director of the Company. The Company will arrange the
disposal of papers that he no longer requires.
If there is a breach or threatened breach of the provisions of Confidentiality, the

Company shall be entitled to injunctive relief.
Liability
An Independent Director will be liable only in respect of such acts of omission or
commission by a company which had occurred with his knowledge, attributable through
Board process, and with his consent or connivance or where he had not acted diligently.
Review Process
The performance of individual Directors and the whole Board and its committees is evaluated
annually. The Independent Director will have to make himself available for carrying out the
annual / periodic performance review of himself and the Board committees where he is a part
thereof for review purpose. Independent Director has to further confirm that he will extend
his contribution to review of the Board of Directors individually as well as for its various
committees on behalf of / as desired by the Board of Directors on an annual / periodic time
frame.

Ind. Directors - T&C On Website

Uploaded by

Copyright:

Available Formats

Ind. Directors - T&C On Website

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ind. Directors - T&C On Website

Uploaded by

Copyright:

Available Formats

Terms and Conditions of Appointment of Independent

Role and responsibility

As an Independent Director, he will be bound by the Code for Independent Directors

As an Independent Director, he has the same general legal responsibilities to the

To manage and direct the business and affairs of the Company;

To ensure congruence between shareholders expectations, Companys goals,

To ensure that the performance of the Company is adequately reported to

Not to achieve or attempt to achieve any undue gain or advantage either to

Strategy and Business Development: The Independent Director should

Performance: The Independent Director should scrutinize the performance of

Risk: The Independent Director should satisfy himself that financial

Other obligations and compliances

Confirmation that he is not disqualified to act as a Director of the Company in terms

Declaration of Independence in terms of the Companies Act, 2013

Disclosure of change in interest in companies where he is appointed / ceased as a

Other directorships and Business Interests

Confidentiality and Non-Disclosure

The attention is drawn to the requirements under Indian regulations as to the

Business plan, annual operations plan

Performance against target

Costing, pricing, profitability, financial budget and related issues

Fees / stipend, evaluations, recommendations etc. related to any of the

Sales commission, third party commission and about reference agents

Information about suppliers and/or customers

Proposed ventures and corporate plans

Technical marketing and financial strategies of the Company and/or its

Core competencies and activities of the Company and/or its customers

On termination of the Appointment, the Independent Director will deliver to the

If there is a breach or threatened breach of the provisions of Confidentiality, the

You might also like