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CS Professional · Compliance Management, Audit and Due Diligence · Documentation and Maintenance of Records

A company secretary is asked which particulars a data bank under Section 150(1) must hold about each person so that companies can use it for selecting independent directors. Which statement matches the section?

The data bank contains the names, addresses and qualifications of persons who are eligible and willing to act as independent directors. It is maintained by a notified body and put on its website for use by companies making such appointments.

  1. ANames, addresses and qualifications of persons who are eligible and willing to act as independent directorsCorrect
  2. BOnly names and PAN of persons who have previously served as directors
  3. CNames and past remuneration of persons recommended by listed companies
  4. DNames and shareholding of persons nominated by promoters

Explanation

Section 150(1) describes the data bank as containing names, addresses and qualifications of persons who are eligible and willing to act as independent directors. It is not limited to past directors, nor does it record remuneration or shareholding.

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