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Sec. 177 of the companies act, 2013

Priti Gupta (Company Secretary) (32 Points)

11 July 2014

Whether Sec. 177 of the Companies Act, 2013 is applicable to Private company as well, which have borrowed money from banks in excess of Rs. 50.00 crores.

whether it has to esrablish a vigil mechanism for the directors and employees u/s 177 of the Companies Act, 2013.

Please provide your valuable inputs.

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Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 12 July 2014

sec 177 relating to audit committee is not applicable to private companies......sec 177(9) relating to establishment of vigil mechanism is applicable to the following companies: (a) the Companies which accept deposits from the public; (b) the Companies which have borrowed money from banks and public financial institutions in excess of fifty crore rupees..... So any company falling in above criteria have to establish a vigil mechanism......