![LIC Notifies Framework for Appointment of Shareholders’ Director in its Board LIC Notifies Framework for Appointment of Shareholders’ Director in its Board](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEik6H4Yz9LjNomavwUG4sXoSa_puoGjXiLi0lNg8rryuAjfjP150539JKLojNrSwyNb4UJvLuoQjaFspycX4loQF6Nhfby1_1afZN7ThhsRkkATdBF6cDCFQTkp4VtWJnEvrnHLLb9ELitlnPwbXN9MzfpgkI4LJNPGXbVdDMexLoyhlvk1wS1e1e89Uh8U/w320-h192-rw/Copy%20of%20Copy%20of%20Copy%20of%20Untitled%20(500%20%C3%97%20300%20px)%20(500%20%C3%97%20280%20px)%20(2).png)
- The new framework requires either 1,000 shareholders or 10% of the total shareholders, whichever is lower, to initiate the process.
- The individual chosen as a shareholders’ director will be appointed by the board for a four-year term, with the option for re-election and re-appointment for an additional four-year term.
- However, the person appointed as a shareholders’ director cannot hold a similar position in more than two body corporates at the same time.
- Also, the second body/corporation in which they have been appointed should not be in a business that is competing or in conflict with the business of LIC.
- The Nomination and Remuneration Committee of the LIC Board has been tasked to carry out adequate due diligence at the time of appointment or re-appointment as a shareholders’ director and for continuation as a shareholders’ director.
Question:
Q.1 What is the term of a shareholders’ director in LIC?a. Two years
b. Three years
c. Four years
d. Five years