Beginning April 2020, the top 500-listed entities, of which around 60 per cent are family-owned companies, shall have to ensure CEO non-duality, that is, the positions of chairperson and CEO will be held by two different individuals. The chairperson shall be a non-executive director and not related to the CEO, according to the definition of the term ‘relative’ defined under the Companies Act 2013.
The term relative is very widely defined in the Companies Act 2013. Members of the Hindu Undivided Family (HUF) are relatives of each other. Relatives of a person are: Spouse, father.. Read More