Amendment in Director's Relatives (Office or Place of Profit) Rules,2003. - G.S.R. 303(E) - Companies Law

NOTIFICATION DATED 6-4-2011 ISSUED BY MINISTRY OF CORPORATE AFFAIRS In exercise of the powers conferred by clause (b) of sub-section (1) of section 642 , read with sub-section (1B) of section 314 of the Companies Act, 1956 , the Central Government hereby makes the following rules to amend the Director s Relatives (Office or Place of Profit) Rules, 2003, namely: 1. (1) These rules may be called Director s Relatives (Office or Place of Profit) Amendment Rules, 2011. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Director s Relatives (Office or Place of Profit) Rules, 2003 , (hereinafter referred to as the said rules), in rule 3, for the figures 50,000 , the figures 2,50,000 shall be substituted. 3. In the said rules, for the figures 50,000 , the figures 2,50,000 shall be substituted. 4. In the said rules, for rule 7, the following rule shall be substituted, namely: The selection and appointment of a relative of a director holding office or place of profit in the company shall be approved by adopting the same procedure applicable to non-relatives : Provided that, in the case of listed public companies, the selection of director for holding place of office or profit in the company shall have to be also approved by a Selection Committee. Explanation .- For the purpose of this sub-rule, the expression Selection Committee means a committee, the majority of which shall consist of independent directors and an expert in the respective field from outside the company: Provided that in case of unlisted companies, independent directors are not necessary but outside experts should be there in the Selection Committee: Provided further that in the case of private companies, independent directors and outside experts are not necessary. [F.NO. 17/75/2011-C.L.V]