📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following is true about the governance

      structure of Asset Reconstruction Companies (ARCs)?
      A At least half of the Board of Directors of the ARC comprises of independent directors. Correct Answer Incorrect Answer
      B The CEO of an ARC can hold the position for up to 15 years without renewal Correct Answer Incorrect Answer
      C ARCs are prohibited from being members of any credit information company Correct Answer Incorrect Answer
      D ARCs can raise funds from deposits made by the public Correct Answer Incorrect Answer
      E ARCs must have at least one-third of their directors from the public sector. Correct Answer Incorrect Answer

      Solution

         ARCs are required to have a majority of independent directors on their board. To ensure transparency and proper governance, ARCs are required to have a majority of independent directors on their board. This helps in making unbiased decisions, especially when dealing with stressed assets.  

      Practice Next
      More Financial Management Questions
      ask-question