Nomination and Remuneration Committee under Companies Act, 2013 vis-à-vis SEBI (LODR) Regulations, 2015

Points of difference Companies Act, 2013 SEBI (LODR) Regulations, 2015
Provision Section 178 r/w Rule 6 of Companies (Meetings of Board and its power) Rules, 2014. Regulation 19.
Applicability Every listed Public Company; or

All Public companies with a paid up capital of 10 crore rupees or more; or

All Public companies having turnover of 100 crore rupees or more; or

All Public companies, having in aggregate, outstanding loans, debentures and deposits exceeding 50 crore rupees.

Every Listed entity.
Members Three or more non-executive directors out of which not less than one-half shall be independent directors. To comprise of three directors, wherein all have to be non-executive directors, at least 50% of them to be independent directors, and if listed entity has outstanding equity shares, then two third of them shall be independent directors.
Chairman No prescription of chairman given here. The chairperson here has to be an independent director.
Role It shall

1. Identify persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down

2. Recommend to the Board their appointment and removal.

3. Specify the manner for effective evaluation of performance of Board, its committees and individual directors.

4. Formulate the criteria for determining qualifications, positive attributes and independence of a director and

5. Recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees.

The role of the nomination and remuneration committee shall be as specified as in Part D of the Schedule II of SEBI(LODR)Regulation,2015.
Quorum No prescription here for NRC meeting but as per SS-1, the quorum for Meetings of any Committee constituted by the Board shall be as specified by the Board. If no such Quorum is specified, the presence of all the members of any such Committee is necessary to form the Quorum. Here the quorum shall be either two members or one third of the members of the committee, whichever is greater, including at least one independent director in attendance.
Frequency of Meeting No prescription here but as per SS-1, committees shall meet as often as necessary subject to the minimum number and frequency prescribed by any law or any authority or as stipulated by the Board. Here the Committee shall meet at least once per year.

Note: The above-mentioned points are Ad Verbatim as per the same given under Companies Act/Rules of 2013/2014, and SEBI (LODR) Regulations 2015.

*****

Disclaimer: – The entire contents of this document have been prepared on the basis of relevant provisions and rules and as per the information existing at the time of the preparation, and the views expressed here are personal in nature. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.

Author Bio

Qualification: CS
Company: N/A
Location: Shubham Phophalia, Gujarat, India
Member Since: 08 May 2021 | Total Posts: 54
I am Shubham from Batch 2016-21 of GNLU. I am in my final year of 5 years integrated BA LLB course from GNLU, Gandhinagar, and I have completed Company Secretary Course meanwhile with 3rd Rank in Ahmedabad, Gujarat in CS Professional. I am a keen reader and enthusiastic listener of Corporate laws an View Full Profile

My Published Posts

More Under Company Law

Leave a Comment

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

Search Posts by Date

June 2021
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930