Corporate Governance

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Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2011 In a Listed Company,
Minimum how many directors shall be appointed in Audit committee, Remuneration Committee, Shareholders and Grievance Committee.

Kindly also give me details of how many independent directors and executive directors shall be appointed in each of the committee.

Kidnly reply very urgently.

Gaurav

Gaurav (Expert)

10 January 2011 In a audit committee atleast 3 directors to work as members & 2/3of them shall be independent directors..all members should be financially litererate and atleast 1 to have accounting or financial expertise...

remuneration committee is a non mandatory requirement..there are aleast 3 directors all of them should be non executive directors and the chairman of the committee should be an independent dirctor

a board committee under the charimanship of a non executive director is a mandatory requirement..

udit sharma

udit sharma (Expert)

11 January 2011 As per clause 49 of the Listing Agreement,every Listed Company is mandatorily required to constitute an Independent and Qualified Audit Committee defining brief terms of reference. Such Committee shall consist of not less than 3 Directors and at least 2/3rd of the total number of members of Audit Committee must be Independent Directors.

Rightly said by Expert Guarav, constitution of Remuneration Committee is not a mandatory requirement. If such committee is constituted, it shall consist of at least 3 Directors, all of whom must be non-executive Directors and the Chairman should be Independent Director,

Shareholder's/Investor's Grievance Committee is a mandatory committee for Listed Companies and shall consist of not less than 3 Directors under the Chairman of a Non-Executive Director.

God Bless

CS Udit Sharma

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