G.S.R. 303(E) : NOTIFICATION [F.NO. 17/75/2011-C.L.V], DATED 6-4-2011
In exercise of the powers conferred by clause (b) of sub-section (1) of section 642, read with sub-section (1B) of section 314 of the Companies Act, 1956, the Central Government hereby makes the following rules to amend the Director™s Relatives (Office or Place of Profit) Rules, 2003, namely:-
1. (1) These rules may be called Director™s Relatives (Office or Place of Profit) Amendment Rules, 2011.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Director™s Relatives (Office or Place of Profit) Rules, 2003, (hereinafter referred to as the said rules), in rule 3, for the figures 50,000³, the figures 2,50,000³ shall be substituted.
3. In the said rules, for the figures 50,000³, the figures 2,50,000³ shall be substituted.
4. In the said rules, for rule 7, the following rule shall be substituted, namely:”
The selection and appointment of a relative of a director holding office or place of profit in the company shall be approved by adopting the same procedure applicable to non-relatives :
Provided that, in the case of listed public companies, the selection of director for holding place of office or profit in the company shall have to be also approved by a Selection Committee.
Explanation.- For the purpose of this sub-rule, the expression Selection Committee means a committee, the majority of which shall consist of independent directors and an expert in the respective field from outside the company:
Provided that in case of unlisted companies, independent directors are not necessary but outside experts should be there in the Selection Committee:
Provided further that in the case of private companies, independent directors and outside experts are not necessary.
