150. Manner of selection of independent directors and maintenance of databank of independent directors
(1) Subject to the provisions contained in sub-section (5) of section 149, an
independent director may be selected from a data bank containing names, addresses and
qualifications of persons who are eligible and willing to act as independent directors,
maintained by any body, institute or association, as may by notified by the Central
Government, having expertise in creation and maintenance of such data bank and put on
their website for the use by the company making the appointment of such directors:
Provided that responsibility of exercising due diligence before selecting a person from
the data bank referred to above, as an independent director shall lie with the company
making such appointment.
(2) The appointment of independent director shall be approved by the company in
general meeting as provided in sub-section (2) of section 152 and the explanatory statement
annexed to the notice of the general meeting called to consider the said appointment shall
indicate the justification for choosing the appointee for appointment as independent director.
(3) The data bank referred to in sub-section (1), shall create and maintain data of
persons willing to act as independent director in accordance with such rules as may be
prescribed.
(4) The Central Government may prescribe the manner and procedure of selection
of independent directors who fulfil the qualifications and requirements specified under
section 149.