Which among the following is not a correct statement with regard to Corporate Governance in India ?

Corporate governance

1. It is a system of rules, policies, and practices that dictate how a company’s board of directors manages and oversees the operations of a company.
2. It includes principles of transparency, accountability, and security. 
3. It refers to the accountability of the Board of Directors to all stakeholders of the corporation i.e. shareholders, employees, suppliers, customers, and society in general; towards giving the corporation a fair, efficient, and transparent administration.

1. Every company must appoint an individual or firm as auditor
2. One or more women directors are recommended for certain classes of companies
3. The maximum number of permissible directors cannot exceed 15 in a public limited company, etc. are some of the guidelines essential for good corporate governance.

Clause VII (1) of schedule IV requires the independent directors of the company to hold at least one meeting in a year. Since there is no clarity about “year” it shall be interpreted as “financial year”. One or more of the independent directors may also request an extraordinary meeting of the independent directors if he or they reasonably believes that management has breached its fiduciary duty.

Thus, option 2 is not a correct statement with regard to Corporate Governance in India.