XY Ltd. is an unlisted company having 1100 shareholders. One of the directors of the company is of the opinion that the company should constitute Stakeholders Relationship Committee (SRC). However, the Secretary of the c
CS Executive · Company Law · PYQS · December 2022
XY Ltd. is an unlisted company having 1100 shareholders. One of the directors of the company is of the opinion that the company should constitute Stakeholders Relationship Committee (SRC). However, the Secretary of the company claims that it is not mandatory for the company to constitute SRC. Referring to the provisions of the Companies Act, 2013 answer the following questions: (a) Whether the claim of the director is correct?
Answer & Explanation:
Section 178(5) of the Companies Act, 2013 provides for constitution of the stakeholders relationship committee. The company that has more than one thousand shareholders, debenture-holders, deposit- holders and any other security holders at any time during a financial year is required to constitute a Stakeholders Relationship Committee consisting of a chairperson who shall be a non-executive director and such other members as may be decided by the Board. Hence, the claim of the director is correct.
Topics: Meetings of Board and its Powers
Related Questions in this Topic
- Draft a specimen format of minutes of the board meeting and include therein a specimen resolution passed for declaration...
- Deep Sea Trawlers Limited, a public listed company has given the following information for the FY ended 31st March, 2024...
- Speciality Nuts and Bolts Limited, a profit-making listed company has given the following information for the FY ending ...
- The Board of Directors of Omega Computer Systems Limited, a listed company, consisted of twelve directors out of which t...
- The meeting of Board of Directors (BOD) of Amarchand Lalchand Exports limited, a listed company was called on Sunday, th...