Q.Who is an independent director?

At least one-third (1/3) of the board of a listed company must be independent directors — the correct option is (D).

To ensure objective and independent oversight, the law requires every listed public company to have at least one-third of its total number of directors as independent directors. (The Central Government may prescribe a minimum number for certain other public companies as well.)

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A person can be a director in a maximum of 20 companies — option (B).

Section 165 of the Companies Act, 2013 fixes the maximum number of directorships a single person may hold at any one time at 20 companies. Within this limit, the number of public companies must not exceed 10. This ceiling prevents over-commitment and ensures di …

A One Person Company needs a minimum of 1 director.

Under the Companies Act, 2013 the minimum number of directors is: One Person Company – 1, Private company – 2, and Public company – 3. Since a One Person Company has only a single member, the law allows it to function with just one director (who is often the sole member himself). Hence the min …

A public company must have a minimum of 3 directors.

Under the Companies Act, 2013 the minimum number of directors is fixed by the type of company: three for a public company, two for a private company and one for a One Person Company. A public company therefore cannot function with fewer than three directors on its board. (The maximum, for any comp …

A person may act as Managing Director in a maximum of 2 companies.

To ensure a Managing Director can devote proper attention to a company, the Companies Act restricts the number of companies in which one person may hold that office. As a rule a person is appointed Managing Director of one company, but he may be appointed as Managing Director (or manager) of not more than one more company — i.e., a maximum of two companies in all — and …