Question
Consider the following statement: I. MDs and
CEOs of asset reconstruction companies (ARCs) cannot have more than three terms in office. II. The term of MDs and CEOs each term not exceeding 6 years. III. The retirement age of CEOs has been brought on a level pegging with CEOs of private banks, which is 70 years. Which of the above is/are not correct?Solution
The Reserve Bank of India (RBI) announced that managing directors (MDs) and chief executive officers (CEOs) of asset reconstruction companies (ARCs) cannot have more than three terms in office, with each term not exceeding five years. In addition, the retirement age of CEOs has been brought on a level pegging with CEOs of private banks, which is 70 years. Apart from enhancing governance norms, ARCs have been allowed to become resolution applicants (RSa) in bankruptcy proceedings — they can bid for assets in Insolvency and Bankruptcy Code (IBC) cases.
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