Ekta (Practicing CS) (423 Points)
15 April 2014Can anybody provide me the reference for the class of companies which requires to form Audit Committee, Nomination, Remuneration & Stakeholder relationship committees (Committees under Sec. 177 & 178 of CA, 2014?? I could not find that in which rules the classes of companies for the purpose are specified?
Sumit Jaiswal
(Company Secretary)
(818 Points)
Replied 15 April 2014
Rule 6 of the Companies (Meetings of Board and its Powers) Rules, 2014 states:
The Board of directors of every listed companies and the following classes of companies shall constitute an Audit Committee and a Nomination and Remuneration Committee of the Board-
(i) all public companies with a paid up capital of ten crore rupees or more;
(ii) all public companies having turnover of one hundred crore rupees or more;
(iii) all public companies, having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding fifty crore rupees or more.
Explanation.- The paid up share capital or turnover or outstanding loans, or borrowings or debentures or deposits, as the case may be, as existing on the date of last audited Financial Statements shall be taken into account for the purposes of this rule.
Section 178(5) of Companies Act, 2013 states:
The Board of Directors of a company which consists of more than one thousand shareholders, debenture-holders, deposit-holders and any other security holders at any time during a financial year shall constitute a Stakeholders Relationship Committee consisting of a chairperson who shall be a non-executive director and such other members as may be decided by the Board.
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