Discuss Audit Committee Composition under Legislative Framework of Corporate Governance in U.K., Singapore, South Africa, Australia and India.

Audit Committee Composition of UK, Singapore, South Africa, Australia and India are as under: UK The board should establish an audit committee of at least three, or in the case of smaller companies, two independent non-executive directors. Singapore The audit committee should comprise at least three directors, all non-executive, the majority of whom, including the Chairman, should be independent. South Africa The members of the audit committee should have the necessary financial literacy, skills and experience to execute their duties effectively. Australia The Audit Committee should be structured so that it: Consists only of non-executive directors Consists of a majority of independent directors Is chaired by an independent chair, who is not chair of the board Has at least three members. India As per section 177(1) of the Companies Act, 2013 read with rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014, The Board of Directors of every listed public company and the Public Companies having paid up share capital of ₹10 crore rupees or more or having turnover of ₹100 crore rupees or more or which have, in aggregate, outstanding loans, debentures and deposits, exceeding ₹50 crore rupees shall constitute an Audit Committee. As per section 177(2) of the Companies Act, 2013 the Audit Committee shall consist of a minimum of three directors with independent directors forming a majority Provided that majority of members of Audit Committee including its Chairperson shall be persons with ability to read and understand, the financial statement. Regulation 18 of the SEBI (LODR) Regulations, 2015 provides that (1) Every listed entity shall constitute a qualified and independent audit committee in accordance with the terms of reference, subject to the following: (a) The audit committee shall have minimum three directors as members. (b) Two-thirds of the members of audit committee shall be independent directors. (c) All members of audit committee shall be financially literate and at least one member shall have accounting or related financial management expertise. (d) The chairperson of the audit committee shall be an independent director and he shall be present at Annual general meeting to answer shareholder queries. (e) The Company Secretary shall act as the secretary to the audit committee.