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    Question

    In accordance with Section 177 of the Companies Act,

    2013, the Audit Committee constituted by a listed company shall consist of a minimum of ________ directors, and ________ shall form a majority.
    A 3; Independent Directors Correct Answer Incorrect Answer
    B 2; Independent Directors Correct Answer Incorrect Answer
    C 5; Executive Directors Correct Answer Incorrect Answer
    D 3; Nominee Directors Correct Answer Incorrect Answer
    E 4; Independent Directors Correct Answer Incorrect Answer

    Solution

    Section 177 of the Companies Act, 2013 - Audit Committee (1) The Board of Directors  of  every listed public company and such other class or classes of companies, as may be prescribed, shall constitute an Audit Committee. (2) The Audit Committee shall consist of a minimum of three directors   with independent directors forming a majority: Provided that majority of members of Audit Committee including its Chairperson shall be persons with ability to read and understand, the financial statement.

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