Skip to content

CSEET · Economic and Business Environment · Elements of Corporate Governance

Which statement about the composition of the CSR Committee of a company covered by Section 135(1) is correct?

The CSR Committee must have three or more directors, including at least one independent director. Where a company is not required to appoint an independent director, it needs only two or more directors. The law does not demand all independent, all executive, or a woman director.

  1. AIt must have three or more directors, with at least one independent director, unless the company need not appoint an independent director, in which case it needs two or more directorsCorrect
  2. BIt must have five directors, all of them independent
  3. CIt must have two directors, one of them a woman director
  4. DIt must consist of three or more directors, all of them executive directors

Explanation

Section 135(1) requires three or more directors with at least one independent director. The proviso reduces this to two or more directors where the company is not required to appoint an independent director under section 149(4). The other options add requirements not found in the section.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Corporate Governance shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Corporate GovernanceFree diagnostic mock

More Elements of Corporate Governance questions