The market regulator, SEBI has proposed to insert a provision relating to appointment/ re-appointment of persons who fail to get elected as whole-time director whereby it has proposed that a person rejected by a listed company's shareholders as a managing director or full-time director can be appointed or reappointed to the posts only after the company meets various conditions, including detailed justifications. 

However, if the shareholders reject the candidacy of the persons again (detailed justifications), such persons may not be considered for appointment as director, or continue as a director of that listed entity, for two years from the date of rejection by the shareholders.