Sunday, October 6, 2013

STAKEHOLDE​R RELATIONSH​IP COMMITTEE AND CSR COMMITTEE UNDER COMPANIES ACT 2013

Under New Companies Act 2013 ,  Stakeholders Relationship Committee has to be established.

 

It is mandatory to create the above committe if number  of shareholders, deposit holders, debenture holders and other security holder exceeds 1,000 at any time during a Financial Year;

The Stakeholders Relationship Committee is entrusted with the responsibility to resolve the grievances of security holders. The Committee monitors and reviews the performance and service standards of the Registrar and Share Transfer Agents of the Company and provides continuous guidance to improve the service levels for investors.

Under New Companies Act 2013 , composition as determined by the board Corporate Social Responsibility (CSR) Committee

•companies meeting certain conditions should constitute a CSR committee of the Board, consisting of minimum of three directors where draft rules are yet to be released.

•CSR committee should consist of minimum of one Independent director.

•The CSR committee should formulate and monitor CSR policies and the same will be discussed in the Board’s report.

 

The above provision will be applicable to non-listed companies also.

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