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Lakshmi Agro Ltd is covered by section 135(1) but is not required to appoint an independent director under section 149(4). It has only five directors. How many directors must its CSR Committee have at minimum?

The committee needs two or more directors. The proviso to section 135(1) relaxes the usual three-member requirement, and the independent director requirement, for a company that is not obliged to appoint an independent director under section 149(4).

  1. AThree directors including one independent director
  2. BTwo or more directorsCorrect
  3. CThree directors, none needing to be independent
  4. DOne director nominated by the Board

Explanation

The proviso to section 135(1) says that where a company is not required to appoint an independent director under section 149(4), its CSR Committee must have two or more directors. The three-director minimum with an independent member applies to companies that must appoint independent directors. One director alone is insufficient.

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