CS Executive · Company Law and Practice · Directors
Aarav Foods Ltd is sending a notice of general meeting to approve the appointment of Ms. Iyer as an independent director. According to Section 150, what must the explanatory statement annexed to that notice indicate?
The explanatory statement must indicate the justification for choosing the appointee as independent director. Section 150(2) requires this so members can see why the person was selected; remuneration or promoter shareholding details are not what this provision prescribes.
- AThe justification for choosing the appointee as independent directorCorrect
- BThe remuneration of the appointee for the next five years
- CThe list of other companies where the appointee is a director
- DThe shareholding of the promoters in the company
Explanation
Section 150(2) requires the explanatory statement annexed to the notice to indicate the justification for choosing the appointee for appointment as independent director. The other items are not what this provision specifies.
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