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    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.

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