Director (finance) being a whole-time director can attend Audit Committee meetings but does not have a right to vote. Now being a whole-time director, can he be included as a member of the committee? If not why? Is there any precedent regarding this topic?
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Members of Audit Committee
Replies (3)
A whole Time Director can be appointed as a member of Audit Commitee,as long as you comply with sec 292A / clause 49 of the listing agreement as the case may be .
As per section 292A of Companies Act , every public Company having a paid up capital of not less than Rs. 5 Crore shall constitute Audit Committee consisting of atleast 3 members of which two- third shall be the directors other than managing or whole time director.
In the case of listed Company, clause 49 states that:
- The audit committee shall have minimum three directors as members.Two-thirds of the members of audit committee shall be independent directors.
For details, you can refer the listing agreement.
Hi Rakhee
Yes, a whole time director can be a member of audit committee if your company having more than two third director other than Managing Director or Whole time director i.e. two director should be independent/non-executive.
Regards
Ajay
| Originally posted by :Rakhee | ||
| " | Director (finance) being a whole-time director can attend Audit Committee meetings but does not have a right to vote. Now being a whole-time director, can he be included as a member of the committee? If not why? Is there any precedent regarding this topic? | " |
It would be better if the answer is specific regarding Director (Finance)
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