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How often must the independent directors of a company hold a separate meeting under Schedule IV to the Companies Act, 2013?

Question and options

How often must the independent directors of a company hold a separate meeting under Schedule IV to the Companies Act, 2013?

  1. At least once in a financial year

  2. At least once in six months

  3. At least twice in a financial year

  4. At least once a quarter

Answer and explanation

Correct answer: A - At least once in a financial year

Paragraph VII(1) of Schedule IV to the Companies Act, 2013 requires the independent directors to hold at least one meeting in a financial year without the non-independent directors and members of management. The frequencies of four meetings a year, and a gap of no more than 120 days, belong to board meetings under section 173(1).

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