Question

Write a note on:
a) Independent Director
b) Small Shareholders' Director​

Answer 1

Answer:

1 An independent director is a non-executive director of a company who helps the company in improving corporate credibility and governance standards. He or she does not have any kind of relationship with the company that may affect the independence of his/ her judgment

2 A small shareholder is a person who is holding shares of nominal value amounting to a maximum of Rs 20,000 in a public company. Small shareholders are entitled to elect a director in a listed company. The directors elected by these shareholders will be known as a 'Small Shareholders Director'.