Which form of compensation does section 149(9) of the Companies Act, 2013 prohibit for an independent director?
Question and options
Which form of compensation does section 149(9) of the Companies Act, 2013 prohibit for an independent director?
Commission on profit
Sitting fee
Reimbursement of expenses
Stock option
Answer and explanation
Correct answer: D - Stock option
Section 149(9) of the Companies Act, 2013 provides that an independent director is not entitled to any stock option. The director may receive sitting fees under section 197(5), reimbursement of expenses for meetings, and profit-related commission approved by the members.
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