We have a Limited company (Private, closely held). We are raising capital through debt financing from an individual. This individual has put 3 terms and conditions-
1) Mortgage land to him
2) Pledge some shares (just keep it with him, no need to transfer them)
3) To appoint himself as Independent Director in the company until company repays his investment.
I understand the first two conditions well.What are possible repercussions of appointing him as independent director. In case, we have a difference of opinion in future, I want to know what are his legal powers as an independent director? There are 1 CMD and 3 others director in the company( they all are family members).
Overall, what would you recommend I should do.
Thanks in Advance for your help.