The Ministry of Information and Broadcasting (MIB) has issued clarifications regrading definition of a director of company relating to broadcasting firms, which it said should address the concerns of the stakeholders’ compliance under the revamped uplink and downlink guidelines.

“The matter has been examined in the Ministry in the light of the provisions of the Companies Act, 2013 and the consolidated FDI policy, 2020”, the MIB said in a statement, in order to remove the genuine “difficulties being faced by the broadcasters” in this regard as per the amended uplink and downlink guidelines issued recently.

The definition of “Director” under Para 2 (e) of the guidelines, according to MIB, means a director as defined in the sub-section (34) of the Section 2 of the Companies Act, 2013.

All key managerial personnel and editorial staff of the entity, referred in Para 6(g), are to be resident Indian(s). The majority condition as existing in Para 6(g) is only to be read in reference to directors in the Board of Directors.

Further, the Para 6 (g) of the UL/DL guidelines shall be applicable only for the entities seeking or holding permission(s) for news TV channels.

The government had received representations from the broadcasters and their association regarding the difficulties being faced by them due to the interpretation of the definition of “Director” in the 2022 guidelines for uplinking and downlinking of satellite TV channels in India and its implication on the eligibility conditions for a company seeking/holding permission(s) under the guidelines.

The non-news channels had also expressed difficulties in implementation of norms Para 6(g) of the guidelines, which requires majority of the directors on the Board of Directors of the company, key managerial personnel and editorial staff of the entity to be resident Indians.