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CS Executive · Company Law and Practice · Directors

Which of the following statements about the data bank referred to in Section 150 is correct?

The data bank holds data of persons willing to act as independent directors and is created and maintained in accordance with prescribed rules. It is run by a body notified by the Central Government, and the provision says a director may be selected from it.

  1. AIt is maintained by the company secretary of each listed company
  2. BIt contains data of persons willing to act as independent directors, created and maintained in accordance with prescribed rulesCorrect
  3. CIt is maintained by the Registrar of Companies and lists only retired government officers
  4. DIt makes selection from it compulsory for every independent director appointment

Explanation

Section 150(3) says the data bank shall create and maintain data of persons willing to act as independent directors in accordance with prescribed rules. Section 150(1) says an independent director 'may' be selected from it, so use is not compulsory in that text, and it is kept by a notified body, not each company.

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