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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures

Arjun Motors Ltd, a listed company, has put its policy on directors' appointment and remuneration on its website. The Board's report merely says 'The policy is available on our website' with no link and no summary. Based on section 134, what is the position?

The report is not compliant. Even when the policy is on the website, the Board's report must briefly specify its salient features and any changes and indicate the web-address of the complete policy. A vague statement without a link or summary does not meet the proviso.

  1. ACompliant, because the website hosting is enough on its own
  2. BNot compliant, because the report must also specify the salient features and changes in brief and indicate the web-address of the complete policyCorrect
  3. CCompliant, provided the auditors sign the report
  4. DNot compliant, because section 134 requires the full policy in the Board's report in every case

Explanation

Clause (e) policies may be placed on the website, but the second proviso still requires the Board's report to specify the salient features and any change in brief and to indicate the web-address. The report here gives neither, so it is deficient. The full text need not be reproduced when the website route is used.

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