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    Question

    SEBI had mandated the separation of the posts of

    Chairperson and MD of listed companies by April 01, 2022. This norm was a part of recommendations of the _______ on _________. 
    A KM Birla Committee; corporate governance Correct Answer Incorrect Answer
    B Uday Kotak committee; corporate governance Correct Answer Incorrect Answer
    C KM Birla Committee; “Fit and Proper” criteria Correct Answer Incorrect Answer
    D Uday Kotak committee; Listing obligations and disclosure regulations Correct Answer Incorrect Answer
    E Narayan Murthy committee; “Fit and Proper” criteria Correct Answer Incorrect Answer

    Solution

    In 2017, the Uday Kotak Committee had recommended a host of norms and measures on corporate governance. One of the norms proposed was Separation of Roles of CMD i.e. Chairman and MD/CEO at listed firms should be separate and chairmanship should be limited to only non-executive directors. (w.e.f. April 1, 2022 for top 500 listed companies ). Listed entities were initially required to separate the roles of chairperson and MD/CEO from April 1, 2020 onwards. However, based on industry representations, an additional time period of two years was given for compliance.

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