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    Question

    According to Section 178 of the Companies Act, what

    is the composition requirement for the Nomination and Remuneration Committee of a listed public company?
    A It must consist of three or more executive directors, with at least one non-executive director Correct Answer Incorrect Answer
    B It must consist of three or more non-executive directors, with at least one-half being independent directors Correct Answer Incorrect Answer
    C It must have only independent directors, with no non-executive directors Correct Answer Incorrect Answer
    D It must be chaired by the executive chairman of the company Correct Answer Incorrect Answer
    E It must consist of only the executive directors of the company Correct Answer Incorrect Answer

    Solution

    Explanation: 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.

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