Manner of selection of independent directors and maintenance of data bank of independent directors
Section 150 of the Companies Act, 2013 deals with manner of selection of independent directors and maintenance of data bank of independent directors. Subject to the provisions contained in sub-section (6) 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 The Act came into force on 01 Apr 2014.
(1) Subject to the provisions contained in sub-section (6) 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.
Section 150, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Gagan Makar Singh & Anr. v. State of Maharashtra & Shinhan Bank
Court's Decision & Legal Precedent
Quashed NI Act ss.138/141 process against independent non-executive directors who were not in charge of day-to-day affairs; Cos Act s.150 databank/selection regime and related independent-director provisions inform the limited role of IDs for vicarious criminal liability.
On this section: Applied Cos Act s.150 manner of selection of independent directors and maintenance of databank — selection/role of IDs underpins why mere ID status without day-to-day charge cannot sustain NI Act 141 vicarious process.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
18 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- G.S.R No. 38(E) Companies Appointment and Qualification of Directors Amendment Rules 2023 dated 20.01.2023Rule 2023
- G.S.R NO. 410 Companies (Appointment and Qualification of Directors) Amendment Rules, 2022 dated 01.06.2022Rule 2022
- G.S.R. NO. 662(E) The Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2022 dated 29.08.2022Rule 2022
- G.S.R. 418(E)-Companies (Creation and Maintenance of databank of Independent Directors) Amendment Rules, 2021.Rule 2021
- Companies (Appointment and Qualification of Directors) 2nd Amendment Rules, 2019Rule 2019
- Companies (Appointment and Qualification of Directors) Amendment Rules, 2019Rule 2019
- Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2019.Rule 2019
- Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019.Rule 2019
- Companies (Creation and Maintenance of data bank of IDs) Rules 2019Rule 2019
- notification of IICA -data bank of IDsNotification 2019
- Companies (Appointment and Qualification of Directors)Rule 2018
- Companies (Appointment and Qualification of Directors) 4th Amendment Rules, 2018.Rule 2018
- Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2018Rule 2018
- Companies (Appointment and Qualification of Directors)6th Amendment Rule,2018Rule 2018
- Companies (Appointment and Qualification of Directors) Rules,2017Rule 2017
- The Companies (Appointment and Qualification of Directors) Amendment Rules, 2015Rule 2015
- Chapter XI - The Companies (Appointment and Qualification of Directors) Rules, 2014.Rule 2014
- The Companies (Appointment and Qualification of Directors) Amendment Rules, 2014Rule 2014
Another 3 instruments name this provision in its title or its text without being made under it.
Questions about Section 150
What have the courts held on Section 150 of the Companies Act?
Gagan Makar Singh & Anr. v. State of Maharashtra & Shinhan Bank (16 Jan 2024) is the leading judgment on this section among those set out below: Applied Cos Act s.150 manner of selection of independent directors and maintenance of databank — selection/role of IDs underpins why mere ID status without day-to-day charge cannot sustain NI Act 141 vicarious process.
How do I find court cases under Section 150 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 150, section 150 Companies Act, section 150 of the Companies Act. People searching for it also type companies act 2013 section 150. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Gagan Makar Singh & Anr. v. State of Maharashtra & Shinhan Bank (16 Jan 2024).
What should I read with Section 150 of the Companies Act, and has it changed?
Its own text turns on section 149 (Company to have Board of Directors), section 152 (Appointment of directors), so none of them can safely be read on its own. The rules and notifications made under it are where it actually bites, and there are 18: most recently G.S.R No. 38(E) Companies Appointment and Qualification of Directors Amendment Rules 2023 dated 20.01.2023 (2023), then G.S.R NO. 410 Companies (Appointment and Qualification of Directors) Amendment Rules, 2022 dated 01.06.2022 (2022), and 16 more.
When did Section 150 of the Companies Act come into force?
Section 150 of the Companies Act, cited as Companies Act 150, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.