Manner of selection of independent directors and maintenance of databank of independent directors
(1)
Subject to the provisions contained in sub-section ( 5 ) of section 149, an independent director may be selected from a data bank containing names, addresses and qualifications of persons who are eligible and willing to act as independent directors, maintained by any body, institute or association, as may by notified by the Central Government, having expertise in creation and maintenance of such data bank and put on their website for the use by the company making the appointment of such directors:
(2)
The appointment of independent director shall be approved by the company in general meeting as provided in sub-section ( 2 ) of section 152 and the explanatory statement annexed to the notice of the general meeting called to consider the said appointment shall indicate the justification for choosing the appointee for appointment as independent director.