Section 150. Manner of selection of independent directors and maintenance of data bank of independent directors
(1) Subject to section 149, an independent director may be selected from a data bank containing names, addresses and qualifications of persons eligible and willing to act as independent directors, maintained by a body, institute or association notified by the Central Government and placed on its website for use by companies.
Provided that responsibility for exercising due diligence before selecting a person from the data bank shall lie with the company making the appointment.
(2) The appointment of an independent director shall be approved by the company in general meeting under section 152(2), and the explanatory statement shall indicate the justification for choosing the appointee.
(3) The data bank shall create and maintain data of persons willing to act as independent directors in accordance with prescribed rules.
(4) The Central Government may prescribe the manner and procedure for selection of independent directors who fulfil the qualifications and requirements under section 149.
