MCA vide notification dated July 05, 2017 has amended Schedule IV – Code for Independent Directors of the Companies Act, 2013. As per the amendment, the following changes have been introduced:

  • An Independent Director who has either resigned or removed from the Board of Directors shall now be replaced within 3 months, and not 180 days as was previously the requirement.
  • With the inclusion of the term, ‘in a financial year’, it is now mandated that the Independent Directors of a Company shall hold a separate meeting, without the presence of non independent Directors at least once in a financial year.
  • Further, a list of provisions of the Schedule not applicable to a Government company as defined in the Companies Act, 2013 has also been notified.