Multiple Choice Questions on Artisans a sec 8 company is required to form a Audit Committee It appoints 5 member Directors only 2........... for SEBI Grade A ( Officer) Exam Preparation

Back to Main Page

Multiple Choice Questions

Artisans a sec 8 company is required to form a Audit Committee It appoints 5 member Directors only 2...........

Companies Act-Phase (I & II) Audit and auditors
    Download Solution PDF

    Artisans, a sec 8 company is required to form a Audit Committee . It appoints 5 member Directors, only 2 of whom are Independent. Is this a valid constitution of the Audit Committee?

    No, as more than 50 percent shall be Independent Directors
     

    Incorrect Answer

    No, as more than 3/4th shall be Independent, and any fraction shall be counted as 1

    Incorrect Answer

    Yes , as the minimum criteria of 2 Independent Directors is fulfilled

    Incorrect Answer

    Yes, as the provisions are relaxed for a sec 8 company, exempting need for majority Independent Director

    Correct Answer
    छोटे Courses बड़े Results
    Master Audit and auditors
    Prepare through Micro-courses
    Try Now
    Explanation:

    The audit committee of a section 8 company need not have independent directors forming a majority.

    By: Srishti Gupta
    ProfileResources

    Let's Discuss

    Master
    Audit and auditors
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free