ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


Here is a small tabular summary of the committee of mechanism to be adopted by the companies under Companies Act, 2013

Committees and Mechanism to be formed under CA, 2013

S.No.

Committee/Mechanism to be adopted

Applicability

Constitution

Section and Rules applicable

1.

Audit Committee

Public Companies having:

- Paid up share capital>= 10 cr.

- Turnover>= 100Cr.

- Aggregate outstanding loans /borrowings/debentures/deposits> =50cr

Listed Companies.

Minimum 3 directors (Independent directors with majority)

Section 177 read with Rule 6 of Companies (Meeting of board and its powers) Rules, 2014

  1.  

Vigil Mechanism/whistle blower policy

Listed companies.

Companies which accept deposits from the public; and

Companies which have borrowed money from banks and public financial institutions >Rs50 crore.

Companies which are required to constitute audit committee shall operate the vigil mechanism through the audit committee.

Other Public Companies: BOD shall nominate a director to play the role of audit committee to whom other directors and employees can report their concerns.

Section 177 read with Rule 7 of Companies (Meeting of board and its powers) Rules, 2014

  1.  

Nomination and Remuneration Committee

Public Companies having:

a. Paid up share capital>= 100 cr.

b. Aggregate outstanding loans /borrowings/debentures/deposits> =200cr

Listed Companies.

NED>=3 (1/2 should be IDs)

*Chairman of the Company may be appointed as the member but shall not chair such committee

Section 178 read with Rule 6 of Companies (Meeting of board and its powers) Rules, 2014

4.

Stakeholders Relationship Committee

Companies having a combined membership of the shareholders, debenture holders, deposit holders and other security holders > 1000 at any time during a financial year shall constitute

a. NED Chairperson

b. Other members as may be appointed by the board

Section 178 read with Rule 6 of Companies (Meeting of board and its powers) Rules, 2014

5.

Internal Audit

1. Listed Companies

2. Unlisted Public Company having:

- Share capital > =50 Crore

- Turnover>= 200Cr.

- Outstanding loans/

borrowings/debentures/deposit >=100cr

- Outstanding Deposit>= 25Cr

2. Private Company having:

- Turnover>= 200 Cr.

- Outstanding loans/

borrowings/debentures/deposit >=100cr

*Note every public and private company having Outstanding loans/ borrowings/debentures/deposit>=100cr need to appoint internal auditors

Chartered Accountants/Cost Accountants/Any other professional as may be appointed by the board

Section 138 read with rule 13 of The Companies (Accounts) Rules, 2014

6.

Secretarial Audit

Public Company having

- Paid up Share Capital>= 50 Cr

- Turnover>= 250cr

Company Secretary in Practice

Section 204 read with rule 9 of the Companies (appointment of Personnel) Rules,  2014

 
 
"Loved reading this piece by Nisha Sharma?
Join CAclubindia's network for Daily Articles, News Updates, Forum Threads, Judgments, Courses for CA/CS/CMA, Professional Courses and MUCH MORE!"




 



Category LAW, Other Articles by - Nisha Sharma 



Comments


update