[amp_mcq option1=”Every company must appoint an individual or firm as auditor” option2=”The independent directors must attend at least three meetings a year” option3=”One or more women directors are recommended for certain classes of companies” option4=”The maximum number of permissible directors can-not exceed 15 in a public limited company” correct=”option4″]
The correct answer is D. The maximum number of permissible directors can-not exceed 15 in a public limited company.
The Companies Act, 2013 does not prescribe a maximum number of directors for a public limited company. The number of directors in a public limited company is determined by the articles of association of the company. However, the Companies Act, 2013 does prescribe a minimum number of directors for a public limited company. A public limited company must have at least three directors, one of whom must be a woman.
The other options are correct statements with regard to Corporate Governance in India.
Option A: Every company must appoint an individual or firm as auditor. The auditor is responsible for auditing the financial statements of the company and reporting to the shareholders on the accuracy and fairness of the financial statements.
Option B: The independent directors must attend at least three meetings a year. Independent directors are directors who are not associated with the management of the company. They are appointed to the board of directors to provide independent oversight of the management.
Option C: One or more women directors are recommended for certain classes of companies. The Companies Act, 2013 recommends that at least one woman director be appointed to the board of directors of every listed company and every public company with a paid-up capital of more than Rs. 500 crore.