Circular, 2017

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

To All Regional Directors, All Registrar of Companies, All Stakeholders.

independent directors - req.

Sir, General Circular No.0/ '117 Government of India Ministry of Corporate Affairs 5th Floor, 'A' Wing, Shastri Bhawan, Yours faithfully, .5 N-arayanan) ssistant Director Tel:23387263 This Ministry, vide notification number G.s.R. 839(E) dated 5rh July, z0t7 issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2017 inter-alia amending rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014. The said amended Rule 4 inter-alin provides that an unlisted public company which is a joint venture, a wholly owned subsidiary or a dormant company will not be required to appoint Independent Directors. Stakeholders have sought clarifications with regaid to the meaning of joint venfure for the purposes of availing exemption under Rule 4 of the aforesaid Rules as such a term is not defined in the Companies Ac! 2013.

2. The matter has been examined and it is hereby clarified that a "ioint venture,, would mean a joint arrangement, entered into in writing, whereby the parties that have joint control of the arrangement, have rights to the net assets of the arrangement. The usage of the term is similar to that under the Accounting Standards.

3. This issues with the approval of Competent Authority.

Copy to:

(1) File No. 7 / I0/ 2077-CL-I

(2) Guard File.

Subject:

Other instruments under the same Act

All of the The Companies Act, 2013