New SIDBI Grade A New Batch Starts on Nov 18

    Register

    Question

    What should be the composition of the Nomination and Remuneration Committee under the Companies Act, 2013?

    A 3 or more non-executive directors out of which at least one-half shall be independent directors Correct Answer Incorrect Answer
    B Chairperson of the company (whether executive or non-executive) may be appointed as a member of the Nomination and Remuneration Committee but shall not chair such Committee Correct Answer Incorrect Answer
    C at least 5 members, including the chairperson of the company, Correct Answer Incorrect Answer
    D 2 or more non-executive directors, with at least one independent director. Correct Answer Incorrect Answer

    Solution

    Section 178. Nomination and Remuneration Committee and Stakeholders Relationship 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 the Nomination and Remuneration Committee consisting of three or more non-executive directors out of which not less than one-half shall be independent director :Provided that the chairperson of the company (whether executive or non-executive) may be appointed as a member of the Nomination and Remuneration Committee but shall not chair such Committee.

    Practice Next