CRITERIA FOR VARIOUS COMMITTEES UNDER THE COMPANIES ACT 2013.

A board committee is a sub Committee  consisting of board members .These Committees  enables easy management board’s time and allow comfort of compliance to Board.

1. Audit Committee
2. Nomination Committee
3. Stakeholders Committee
4. Corporate Social Responsibility Committee

In addition to above ,  Risk Management Committee  is a mandatory requirement under SEBI (LODR) Regulations, 2015 .

Below table will give an insight at one place about criteria for above Committees:

INR – CR

Committees ACM NRC CSR SC RMC
Section  

177

 

178

 

135

Not mandatory under SEBI (LODR) Regulations

 

However where the amount to be spent for CSR activities does not exceed Rs 50 lakhs, there is no requirement for constitution of CSR committee, function of such committee can be done by the board .

 

178[5]

 

SEBI- LODR

Paid Up Capital or 10 10 whose Number of shareholders or debenture holders ≥ 1000 Top 500 Listed Companies.

There is no requirement for formation of risk management committee under Companies Act, 2013

Turnover , or 100 100 1000

Preceding FY

Borrowing, or  

100

 

50

Net Worth , or 500

Preceding FY

Net Profit, or 5

Preceding FY

Member  At least 3 Directors At least 3 Non- Executive Directors At least 3 Directors At least 3 Among Members of Board
Independent Directors  

Listed- 2/3 rd

Other- Majority

 

At Least 50 %

 

No such condition

 

At Least – 1

 

No such condition

Chairperson Listed- Independent Director Only Independent Director & shall not be Chairperson in any other Committees Non- Executive.

ID can be

No such condition No such condition
No of Meetings Listed- 4 [ gap between 2 meeting should not exceed 120 days]

Other- As desirable

Listed- 1 in an year.

Other – As desirable

Board to decide Board to decide At Least – 1 in a Year
Quorum Listed- 2 or 1/3rd which ever is higher- with Minimum 2 ID must.

Other- BoD can decide

Listed- 2 or 1/3rd which ever is higher- with Minimum 1 ID must.

Other- BoD can decide 1

BoD can decide BoD can decide BoD can decide
Presence of Chairperson Yes  May be Yes No such condition No such condition
Discloser in Directors Report Yes Yes Yes Yes Yes

B] Other than Committees

Internal Audit Woman Director Independent Director
Paid up capital or 50 100 10
Turnover or 200 300 100
Borrowings 100 50
Section 138 149 149

Author Bio

Qualification: CS
Company: N/A
Location: navi mumbai, Maharashtra, India
Member Since: 26 May 2021 | Total Posts: 2
Company Secretary since 25 years View Full Profile

My Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Telegram

taxguru on telegram GROUP LINK

Review us on Google

More Under Company Law

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

September 2022
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930