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?

Q: Answer-XYZ Ltd., a listed entity, has only 2 independent directors on its 12-member Board. Audit Committee...

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

A Yes, any number is acceptable.

B No, listed companies must have at least 50% independent directors on the Board if Chairman is executive.

C Yes, as long as audit committee has 1 independent director.

D No, audit committee must have majority of independent directors.

E Both B and D.

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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?

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