LETTER OF APPOINTMENT OF INDEPENDENT DIRECTOR
We are pleased to inform you that the Shareholders of the Company at the Extra Ordinary General Meeting held on 30th April, 2014 have approved the Resolution for your appointment as an Independent Director of the Company passed at the meeting of Board of Directors of the company held on 2nd April, 2014 pursuant to the provision stated under the Companies Act, 2013 (Act).
As per the requirements of the Act, the above is being formalized through this letter of appointment.
This letter sets out the terms of your appointment as an Independent Director. Your relationship with the Company will be that of an office-holder and not one of contract for employment in the Company.
The terms of your appointment, as set out in this letter, are subject to the extant provisions of the:
(i) The Articles of Association of the Company
1. Appointment and term thereof
Your appointment as a non-executive Independent Director on the Board of Directors (Board) of Euro Footwear Limited will be for a period of five years. Your appointment is also subject to the maximum permissible Directorships that one can hold as per the provisions of the Companies Act, 2013. The Company is at liberty to disengage Non-Executive Independent Director subject to compliance of relevant provisions of Companies Act, 2013
2. Board Committee
You are also appointed to serve as a Non-Executive and Independent Director of the following Committee(s) of the Board:
- Audit Committee
- Nomination and Remuneration Committee
- Corporate Social Responsibility Committee
3. Role Duties and Responsibilities
Apart from attending Board and Committee Meetings, your role and duties will be those normally required of a Non-Executive Independent Director under the Act. There are certain duties prescribed for all Directors, both Executive and Non¬-Executive, which are fiduciary in nature and the same are specified under Section 166 of the Act especially under Schedule IV of the Companies Act, 2013 (Copy attached).
4. Code of Conduct
During your tenure, you are required to comply with the Code for Independent Directors in pursuance to the provisions of Section 149(8) of the Companies Act, 2013 and more specifically provided in Schedule IV of the Act as amended from time to time.
Further you are also required to comply with the Code of Conduct for the Directors and Senior Management of the Company as amended from time to time.
5. Conflict of Interest
It is accepted and acknowledged that you may have business interests other than those of the Company. As a condition to your appointment, you are required to declare any such directorships, appointments and interests to the Board in writing in the prescribed form at the time of your appointment
In the event that your circumstances seem likely to change and might give rise to a conflict of interest or, when applicable, circumstances that might lead the Board to revise its judgment that you are independent, this should be disclosed to both the Chairman and the Secretary
You must apply the highest standards of confidentiality and not disclose to any person or company (whether during the course of the Appointment or Two years after your termination), any confidential information, including commercial secrets, technologies, advertising and sales promotion plans, unless such disclosure is expressly approved by the Board or required by law concerning the Company and any Subsidiary/Associate Companies with which you come into contact by virtue of your position as a Non-Executive & Independent Director.
Your attention is drawn to the requirements under both legislation and regulation as to the disclosure of unpublished price sensitive information. Consequently you should not make any statements that might risk a breach of these requirements without prior clearance from the Chairman or Company Secretary.
On termination of the Appointment you will deliver to the Company all books, documents, papers and other property of or relating to the business of the Company or any Subsidiary/Associate Company which are in your possession, custody or power by virtue of your position as a Non-Executive and Independent Director of the Company. The Company is able to arrange the disposal of papers which you no longer require.
7. Induction and Development
The Company shall, if required, conduct formal induction program for its Independent Directors.
The Company shall, as may be required, support Directors to continually update their skills and knowledge and improve their familiarity with the Company and its business.
8. Performance Appraisal I Evaluation Process
Your performance, as a member of the Board, shall be evaluated annually. Evaluation shall be done by all the Other Directors. The criteria for evaluation shall be determined by the Nomination & Remuneration Committee and disclosed in the Company’s Annual Report. However, the actual evaluation process shall remain confidential and shall be a constructive mechanism to improve the effectiveness of the Board/ Committee.
9. Changes of Personal Details
During the Term, you shall promptly intimate the Company and the Registrar of Companies / MCA in the prescribed manner, of any change in address or other contact and personal details provided to the Company.
10. Fees I Remuneration
You will be paid such remuneration by way of sitting fees for attending the meetings of the Board and the Committees as may be decided by the Board from time to time, subject to approval of the shareholders, if required.
Further, the Company may pay or reimburse to you such fair and reasonable expenditure, as may have been incurred by your while performing your role as an Independent Director of the Company.
Your Directorship on the Board of the Company shall terminate or cease in accordance with law. Apart from the grounds of termination as specified in the Act, your Directorship may be terminated for violation of any provision of the Code of Conduct of the Company.
You may resign from the Directorship of the Company by giving a notice in writing to the Company stating the reasons for resignation. The resignation shall take effect from the date on which the notice is received by the Company or the date, if any, specified by you in the notice, whichever is later.
If, at any stage during the Term, there is a change that may affect your status as an Independent Director as envisaged in Section 149(6) of the Act, or if applicable, you fail to meet the criteria for “independence” under the Companies Act, 2013, you agree to promptly submit your resignation to the Company with effect from the date of such change.
In the event of any claim or litigation against the Company, based upon any alleged conduct, act or omission on your part during your Term, you agree to render all reasonable assistance and cooperation to the Company and provide such information and documents as are necessary and reasonably requested by the Company or its counsel.
13. Governing Law
This document is governed by and will be interpreted in accordance with Indian Law and your engagement shall be subject to the jurisdiction of the Indian courts.
- This letter represents the entire understanding, and constitutes the whole agreement, in relation to your appointment and supersedes any previous agreement between yourself and the Company with respect thereto and, without prejudice to the generality of the foregoing, excludes any warranty, condition or other undertaking implied at law or by custom.
- No waiver or modification of this letter shall be valid unless made in writing and signed by you and the Company.
15. Acceptance of Appointment
By accepting this appointment, you confirm that you are able to allocate sufficient time to meet the expectations from your role to the satisfaction of the Board. We are confident that the Board and the Company will benefit immensely from your rich experience and we are eager to have you as an integral part of the growth of our Company. If these terms of appointment are acceptable to you, please confirm your acceptance by signing and returning the enclosed copy of this letter.
For Euro Footwear Pvt. Limited