Under the Companies Act, 2013, how many consecutive terms may an independent director hold before a cooling-off period is needed?
Question and options
Under the Companies Act, 2013, how many consecutive terms may an independent director hold before a cooling-off period is needed?
Four
Two
Three
Five
Answer and explanation
Correct answer: B - Two
Section 149(11) of the Companies Act, 2013 bars an independent director from holding office for more than two consecutive terms of up to five years each under section 149(10). After two terms the person may be appointed again only after a cooling-off period of three years.
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