Briefly explain the SEBI LODR Regulations, 2015 provisions related to role and responsibilities of Stakeholders Relationship Committee, its chairman, composition and number of meetings to be held in a year.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2022
Briefly explain the SEBI LODR Regulations, 2015 provisions related to role and responsibilities of Stakeholders Relationship Committee, its chairman, composition and number of meetings to be held in a year.
Answer & Explanation:
The listed entity shall constitute a Stakeholders Relationship Committee to specifically look into various aspects of interest of shareholders, debenture holders and other security holders. The role of the Stakeholders Relationship Committee shall be as specified in Part D of the Schedule II of SEBI (LODR) Regulations, 2015 which includes: Resolving the grievances of the security holders of the listed entity including complaints related to transfer/transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate certificates, general meetings etc. Review of measures taken for effective exercise of voting rights by shareholders. Review of adherence to the service standards adopted by the listed entity in respect of various services being rendered by the Registrar & Share Transfer Agent. Review of the various measures and initiatives taken by the listed entity for reducing the quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the company. The chairperson of this committee shall be a non-executive director. The Chairperson of the Stakeholders Relationship Committee shall be present at the annual general meetings to answer queries of the security holders. The committee shall comprise of at least three directors. The committee shall have at least one independent director. In case of a listed entity having outstanding SR equity shares, at least two thirds of the Stakeholders Relationship Committee shall comprise of independent directors. The committee shall meet at least once in a year.
Topics: Corporate Governance
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