Home › CA Inter › corporatelaws › Audit Committee Composition › The Board of a listed company must constitute an…
The Board of a listed company must constitute an Audit Committee with at least:
A2 directors with 1 independent
B3 directors with majority independent
C3 directors with 1 independent
D4 directors with all independent
Answer & Solution
Correct answer: B. 3 directors with majority independent
1. Section 177 — Audit Committee shall consist of a minimum of 3 directors with independent directors forming a MAJORITY.
2. Chairperson must be an independent director.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Management and Administration_