Companies Act, 2013

Section 261

Appointment of independent directors

⚡ Quick Answer Reference: Section 261 Companies Act

Provision: Section 261 of Companies Act
Act: Companies Act, 2013
Classification: corporate
Jurisdiction: India

Statutory Content

What does Section 261 of Companies Act say?

Every listed company and every public company having a paid-up share capital of ten crore rupees or more shall have at least one-third of the total number of directors as independent directors: Provided that the proportion of independent directors shall be two-thirds in the case of a public company, which is a subsidiary of a foreign company.

Indian StandardSection 261, Companies Act, 2013

Bluebook (21st ed.)Companies Act, 2013, § 261 (India)

Court Pleading StandardSection 261 of the Companies Act, 2013

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

Common Questions about Section 261 Companies Act

What is Section 261 of Companies Act?

Section 261 of the Companies Act, 2013 (Companies Act) defines and regulates "Appointment of independent directors". The section states: Every listed company and every public company having a paid-up share capital of ten crore rupees or more shall have at least one-third of the total number of directors as independe...

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