📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      XYZ Ltd., a listed entity, has only 2 independent

      directors on its 12-member Board. Audit Committee is formed with 2 independent and 1 executive director. As per SEBI LODR Regulations, is this valid?
      A Yes, any number is acceptable. Correct Answer Incorrect Answer
      B No, listed companies must have at least 50% independent directors on the Board if Chairman is executive. Correct Answer Incorrect Answer
      C Yes, as long as audit committee has 1 independent director. Correct Answer Incorrect Answer
      D No, audit committee must have majority of independent directors. Correct Answer Incorrect Answer
      E Both B and D. Correct Answer Incorrect Answer

      Solution

      SEBI requires at least 50% independent directors if chairman is executive. Audit Committee must consist of minimum 3 directors, with majority independent.

      Practice Next
      More Commerical Law Questions
      ask-question