K M Birla committee suggested are not less than ___of the board should comprise of non-executive directors A.0.33, B.0.5, C.0.4, D.0.25.

The K M Birla committee, which was established primarily to enhance corporate governance in India, suggested that a minimum proportion of the board of directors should consist of non-executive directors. The aim of this recommendation is to ensure that there is a balanced representation on the board, allowing for proper oversight and a check on executive management, which is essential for effective governance.

Key Points:

• Non-executive directors contribute independent judgment and are not part of the company’s management. Their presence on the board helps in minimizing conflicts of interest.
• The committee emphasized that having a certain percentage of non-executive directors is crucial in strengthening the oversight capabilities and improving the overall functioning of the board.

Analysis of Options:

• A. 0.33 (33%): This could provide a basic level of non-executive oversight but may not be sufficient to ensure robust governance.
• B. 0.5 (50%): This is typically seen as a strong indication of independence on the board, providing significant non-executive influence.
• C. 0.4 (40%): This also represents a substantial portion but falls short of half.
• D. 0.25 (25%): This is a relatively low threshold for non-executive directors.

The correct recommendation from the K M Birla committee is that a minimum of 50% of the board should comprise non-executive directors.

Final Answer

B. 0.5 (50%)