Difference between the constitution of various committees to be constituted under SEBI (LODR) regulations 2015 and companies act 2013 which includes Audit Committee, Nomination & Remuneration Committee and Stakeholder Relationship Committee.
1. Audit Committee
| Point Of Difference |
SEBI (LODR) Regulations 2015 |
The Company Act 2013 |
| Members |
Minimum 3 Directors |
Minimum 3 Directors |
| Independent Directors |
Min 2/3rd of the total members should be Independent Directors |
Majority of members should be Independent Directors |
| Financial Literacy |
All members should posses financial literacy and one should be expert of that |
Majority of members including Chairperson should be financial literate |
| Chairperson |
Independent Director |
Act is silent |
| Secretary |
Company Secretary |
Act is silent |
2. Nomination & Remuneration Committee
| Point Of Difference |
SEBI (LODR) Regulations 2015 |
The Company Act 2013 |
| Members |
Minimum 3 Directors |
Minimum 3 Directors |
| Independent Directors |
Min 50% of the directors should be Independent Director |
Majority of Directors should be Independent |
| Non-Executive Directors |
All Directors should be Non Executive |
Min 3 Directors |
| Chairperson |
Independent Director |
Act is silent |
| Provision for the Chairperson of COMPANY |
The Chairperson of the company (whether executive or non-executive) can be appoint as member but cannot be chair this committee |
The Chairperson of the company (whether executive or non-executive) can be appoint as member but cannot be chair this committee |
3. Stakeholder Relationship Committee
| Point Of Difference |
SEBI (LODR) Regulations 2015 |
The Company Act 2013 |
| Members |
Min 3 Directors |
Any |
| Independent Directors |
Have 1 Independent Director |
Act is silent |
| Chairperson |
Non Executive |
Non Executive |
