New Co Bill to retain contentious provisions

In the final draft of Companies Bill 2011, the Corporate Affairs Ministry is learnt to have fixed the term for independent directors to six consecutive years, while the company beyond specific amount of paid-up capital will be required to have at least one-third of the total number of directors as independent directors.

“Even in the case of rotation of audit firms and partners, we have retained the original stipulation which disallows any company to appoint or re-appoint an individual or a firm as auditor for more than five consecutive years,” sources told PTI.

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