CS Professional · Compliance Management, Audit and Due Diligence · Documentation and Maintenance of Records
Kaveri Textiles Ltd proposes to appoint Ms. Radhika Menon, selected from the data bank, as an independent director. The company secretary is preparing the notice of the general meeting. Which item must the explanatory statement annexed to the notice contain as per Section 150?
The explanatory statement annexed to the notice of the general meeting must indicate the justification for choosing the appointee as independent director. Section 150(2) requires this along with approval of the appointment by the company in general meeting.
- AThe justification for choosing the appointee as independent directorCorrect
- BThe details of the fees charged by the data bank body
- CA certificate from the data bank body about her net worth
- DThe list of all other persons available in the data bank
Explanation
Section 150(2) requires the appointment to be approved by the company in general meeting and the explanatory statement to indicate the justification for choosing the appointee. The other items are not required by that provision.
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