100+ Free IICA Independent Director Practice Questions

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2026 Statistics

Key Facts: IICA Independent Director Exam

50 / 75 min

Questions / duration

IICA Independent Directors Databank

50%

Minimum passing score

IICA Independent Directors Databank

Unlimited

Number of attempts

IICA Independent Directors Databank

2 Years

Time allowed to pass after registration

IICA Independent Directors Databank

100

Free practice questions here

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IICA Independent Director Test: an online self-assessment covering companies law, securities law, basic accountancy, and corporate governance. The passing score is at least 50% in aggregate, attempts are unlimited with a one-day gap, and the test must be passed within 2 years of databank inclusion unless exempt.

Sample IICA Independent Director Practice Questions

Try these sample questions to test your IICA Independent Director exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Section 149(4) of the Companies Act, 2013, every listed public company is required to have at least what proportion of its total number of directors as independent directors?

A.At least one-half

B.At least one-third

C.At least two-thirds

D.At least one-fourth

Explanation: Section 149(4) of the Companies Act, 2013 mandates that every listed public company must have at least one-third of its total number of directors as independent directors. Any fraction in this calculation is rounded off as one.

2Which Schedule of the Companies Act, 2013 prescribes the 'Code for Independent Directors' in India?

A.Schedule II

B.Schedule III

C.Schedule IV

D.Schedule V

Explanation: Schedule IV of the Companies Act, 2013 establishes the professional conduct guidelines, roles, functions, duties, and appointment procedures for independent directors under the Code for Independent Directors.

3Under Section 177 of the Companies Act, 2013, what proportion of the Audit Committee members must be independent directors?

A.All members

B.A majority of the members

C.At least one-third

D.At least two-thirds of all committee members

Explanation: Section 177(2) of the Companies Act, 2013 specifies that the Audit Committee shall consist of a minimum of three directors with independent directors forming a majority.

4Which financial statement ratio is calculated by dividing current assets by current liabilities?

A.Quick Ratio

B.Current Ratio

C.Debt-to-Equity Ratio

D.Interest Coverage Ratio

Explanation: The Current Ratio is a standard liquidity ratio calculated as Current Assets divided by Current Liabilities. It evaluates a company's ability to cover short-term obligations due within one year.

5Under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, what is the maximum number of listed entities in which a person can serve as an independent director?

A.Five

B.Seven

C.Ten

D.Twelve

Explanation: Under Regulation 17A of SEBI LODR, a person shall not serve as an independent director in more than seven listed entities. If the person is serving as a whole-time director in any listed entity, they can serve as an independent director in a maximum of three listed entities.

6Section 149(12) of the Companies Act, 2013 provides a safe harbor for independent directors, stating they can only be held liable for acts of omission or commission that occurred with their:

A.Attendance at the Board meeting where the act was approved

B.Board-process knowledge with consent or connivance, or lack of diligence

C.A signature on any management contract

D.General awareness of the company's business

Explanation: Under Section 149(12), an independent director is liable only for a company act or omission that occurred with knowledge attributable through Board processes and with the director's consent or connivance, or where the director did not act diligently.

7Under SEBI LODR Regulation 18, what must the chairperson of a listed entity's Audit Committee do at the annual general meeting?

A.Present the statutory auditor's report

B.Attend and answer shareholder queries

C.Chair the entire annual general meeting

D.Approve every shareholder resolution

Explanation: Regulation 18(1)(d) requires the Audit Committee chairperson, who must be an independent director, to be present at the annual general meeting to answer shareholder queries.

8Under the Companies Act, 2013, what is the maximum tenure for which an independent director can be appointed in a single term?

A.Three consecutive years

B.Five consecutive years

C.Ten consecutive years

D.Two consecutive years

Explanation: Section 149(10) of the Companies Act, 2013 states that an independent director shall hold office for a term up to five consecutive years on the Board of a company, and is eligible for reappointment on passing of a special resolution.

9What type of resolution is required for the reappointment of an independent director for a second consecutive term of five years?

A.Ordinary Resolution

B.Special Resolution

C.Board Resolution with unanimous consent

D.No resolution is required; it is auto-renewed

Explanation: Section 149(10) of the Companies Act, 2013 dictates that an independent director can be reappointed for a second consecutive term only on the passing of a special resolution by the company's shareholders.

10Under SEBI (Prohibition of Insider Trading) Regulations, 2015, what does 'UPSI' stand for?

A.Unified and Published Price Sensitive Information

B.Unpublished Price Sensitive Information

C.Unsecured Private Shareholder Index

D.Unapproved Public Share Issue

Explanation: UPSI stands for Unpublished Price Sensitive Information, which refers to any information relating to a company or its securities that is not generally available and which, upon becoming available, is likely to materially affect the price of the securities.

About the IICA Independent Director Exam

The Independent Director Online Proficiency Self-Assessment Test is conducted by IICA under the Ministry of Corporate Affairs, India. Individuals are included in the Independent Directors Databank first; unless exempt, they must pass within two years of inclusion or their name is removed. The test covers companies law, securities law, basic accountancy, and corporate governance.

Assessment

Online proctored self-assessment with 50 MCQs worth 2 marks each: 25 direct Board Essential questions and 25 scenario-based Board Practice questions. IICA publishes four topic areas, a 50% aggregate passing standard, unlimited attempts, and a one-day gap between booked attempts; the current public page does not state a negative-marking rule.

Time Limit

75 minutes

Passing Score

At least 50% in aggregate

Exam Fee

Included in Databank subscription (₹5,000 + 18% GST for 1 year, ₹15,000 + 18% GST for 5 years, or ₹25,000 + 18% GST for lifetime) (Indian Institute of Corporate Affairs (IICA))

IICA Independent Director Exam Content Outline

Not published

Companies Act, 2013

Rules on directors' duties, board meetings, committees, auditing, and compliance management

Not published

Corporate Governance & Board Effectiveness

Ethics, evaluation of board members, duties to minority stakeholders, and corporate social responsibility (CSR)

Not published

Financial Literacy & Accountancy

Financial statements analysis, balance sheet concepts, cash flow, profit & loss, and audit reports

Not published

Securities Law & SEBI Regulations

SEBI LODR, prevention of insider trading, and listing compliance requirements for Indian companies

How to Pass the IICA Independent Director Exam

What You Need to Know

Passing score: At least 50% in aggregate
Assessment: Online proctored self-assessment with 50 MCQs worth 2 marks each: 25 direct Board Essential questions and 25 scenario-based Board Practice questions. IICA publishes four topic areas, a 50% aggregate passing standard, unlimited attempts, and a one-day gap between booked attempts; the current public page does not state a negative-marking rule.
Time limit: 75 minutes
Exam fee: Included in Databank subscription (₹5,000 + 18% GST for 1 year, ₹15,000 + 18% GST for 5 years, or ₹25,000 + 18% GST for lifetime)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

IICA Independent Director Study Tips from Top Performers

1Thoroughly review Chapter XI of the Companies Act, 2013, focusing on directors' appointment, qualification, and duties.

2Understand standard financial statements and key financial ratios such as debt-to-equity, current ratio, and return on equity.

3Study SEBI Listing Obligations and Disclosure Requirements (LODR) regulations, particularly board composition and committee mandates.

4Go through the official e-learning modules and mock tests offered on the Independent Directors Databank portal.

Frequently Asked Questions

Who must take the IICA Independent Director Test?

Individuals included in the Independent Directors Databank generally must pass within two years unless they qualify for an exemption under the current Rule 6 criteria, which include specified director/KMP, government/regulator or statutory-corporation experience and specified professional-practice categories.

What is the qualifying score and pattern of the test?

IICA requires at least 50% in aggregate to pass. Its current scheme specifies 50 questions for 100 marks in 75 minutes: 25 direct Board Essential items and 25 scenario-based Board Practice items. The public page does not state a negative-marking rule, so confirm that detail in the logged-in test guide.

How many times can I attempt the self-assessment test?

There is no limit on the number of attempts. The current public rule requires a gap of one day between two booked slots; access also depends on maintaining the relevant databank profile/subscription status.