CS Executive · Company Law and Practice · Board Composition and Powers of the Board
Himalaya Pharma Ltd is a listed public company with a board of 8 directors. At least how many of them must be independent directors, assuming the fraction rule applies?
At least three directors must be independent. A listed public company needs independent directors equal to one-third of the board, and one-third of 8 is 2.67, which is rounded up to 3.
- A2
- B3Correct
- C4
- D1
Explanation
A listed public company needs at least one-third of its total directors to be independent. One-third of 8 is 2.67, and a fraction is rounded up to the next whole number, giving 3. Choosing 2 wrongly rounds down.
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