Independence of committee of management and audit committee
7.—(1) For the purposes of sections 36(2) and 59(1)(b) of the Act, a member of the audit committee or the committee of management of a credit society shall be considered to be independent of the credit society if he has no management relationship with the credit society or any of its subsidiaries that could interfere, or be reasonably regarded as interfering, with the exercise of the member’s independent business judgment with regard to the interests of the credit society.
(2) Without prejudice to paragraph (1), a member of the audit committee or the committee of management of a credit society shall not be considered to be independent of the credit society if he, or any member of his immediate family, is employed by the credit society or any of its subsidiaries.
(3) In this rule, unless the context otherwise requires, a reference to a member of the immediate family of a member of the audit committee or the committee of management of a credit society means the member’s spouse, child, adopted child, step-child, parent, step-parent, brother, step-brother, sister or step-sister.