Preferential Life Insurance Ltd. was incorporated to conduct the insurance business. The Certificate of Registration was issued to the company on 1st June, 2014. The Board of Directors of the company consists of five dir
CS Professional · Ethics, Governance and Sustainability · PYQS · June 2021
Preferential Life Insurance Ltd. was incorporated to conduct the insurance business. The Certificate of Registration was issued to the company on 1st June, 2014. The Board of Directors of the company consists of five directors, out of which two directors are independent directors. (ii) Would your answer be different if Certificate of Registration to the company be issued on 1st April, 2017?
Answer & Explanation:
However, if the company was granted Certificate of Registration on 1st April, 2017, the insurance company still has time to comply with the requirement of appointment of third Independent Director as the period of five years since grant of Certificate of Registration has not lapsed. Therefore, the composition of Board shall be treated as valid as on date.
Topics: Corporate Governance
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