Under the Companies Act 2013, the 'Independent Directors' must hold a special training. If an independent director fails to attend the training, what is the consequence? MCQ with Answer and Explanation

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Under the Companies Act 2013, the 'Independent Directors' must hold a special training. If an independent director fails to attend the training, what is the consequence?

A. No consequence, as training is optional

B. He is automatically removed from the board

C. His appointment is rendered void, and he cannot be appointed as an independent director

D. He is fined ₹50,000

Answer: Option C

Solution (By JKExamLibrary)

As per the Companies (Appointment and Qualification of Directors) Rules, if a person selected as an independent director fails to undergo the prescribed training, their appointment becomes void, and they are ineligible for appointment as an independent director.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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