<P> "For the purpose of this clause the expression' independent directors' means directors who apart from receiving director's remuneration, do not have any other material pecuniary relationship or transactions with the company, its promoters, its management or its subsidiaries, which in judgment of the board may affect independence of judgment of the directors ." </P> <P> The Companies Act, 2013, most sections of which got implemented from 1 April 2014, has mandated all listed public companies to have at least one - third of the total Directors to be independent . Whereas in the case of unlisted public companies, the following class of companies shall have at least two directors as independent directors: </P> <P> (i) Public Companies having paid up share capital of Ten Crore rupees or more; or (ii) Public Companies having turnover of One Hundred Crore rupees or more; or (iii) Public Companies which have, in aggregate, outstanding loans, debentures and deposits exceeding 50 Crore rupees or more . </P> <P> The Companies Act, 2013 is drafted taking into consideration the noteworthy inputs and contribution that an Independent Director can bring in to the business . Section 149 (6) of the act stipulates the criteria for a candidate that ensures highest standards of integrity, while also preventing any conflict of interest . The provisions seek to ensure the autonomy of the appointee to facilitate effective discharge of duties such as upholding shareholders' interest, upholding corporate governance standards, among others . The compensation offered to such Independent Directors in the form of "sitting fee" has also been increased from Rs. 20,000 (prescribed by Companies Act, 1956) to a maximum of Rs. 1, 00,000 / - per meeting . </P>

Difference between independent director and non independent director