New RBI Grade B Notification Coming Soon... Prepare with Us!! Click here to enroll

    Register

    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.

    Practice Next

    Relevant for Exams:

    ×
    ×