RJS Ltd. is in the list of top 500 listed entities. P is a non-executive chairman of the company. Q, R & T are the promoters of the company. P is related to the one of the promoter T. A is the only woman director (ex

CS Executive · Securities Laws and Capital Markets · PYQS · June 2023
RJS Ltd. is in the list of top 500 listed entities. P is a non-executive chairman of the company. Q, R & T are the promoters of the company. P is related to the one of the promoter T. A is the only woman director (executive director) in the Board. Further, the company is planning to appoint C (aged 70 years) as a non-executive director. Answer the following with reference to the SEBI (LODR) Regulations, 2015: Who shall approve the related party transactions in the Audit Committee meeting of a listed company ?

Answer & Explanation:

Approval Authority: All related party transactions shall be approved by only independent directors in the Audit Committee. Reason: As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee plays a crucial role in overseeing related party transactions. Specifically, all related party transactions must be approved by the independent directors who are members of the Audit Committee to ensure objectivity and protect the interests of minority shareholders.

Topics: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR)

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