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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board's Accountability on ESG

Himalaya Foods Ltd, a listed company, has a Stakeholders Relationship Committee. A group of small investors complains that their grievances on dividend payments are not being resolved. Where does board accountability for this complaint primarily sit?

Primary responsibility lies with the Stakeholders Relationship Committee, which considers and resolves security holders' grievances such as unpaid dividends, while the board remains accountable for overseeing it. The Audit Committee and the auditor have different roles and do not handle investor complaints.

  1. AWith the Stakeholders Relationship Committee, which must consider and resolve security holders' grievances, and the board overseeing itCorrect
  2. BWith the Audit Committee alone, as it handles all financial matters
  3. CWith the statutory auditor, who must resolve investor complaints
  4. DWith the registrar of companies, who must settle all dividend complaints directly

Explanation

The Stakeholders Relationship Committee exists to consider and resolve grievances of security holders, including non-receipt of dividends, and it reports to the board, which remains accountable. The Audit Committee focuses on financial reporting and controls, and the auditor has no role in resolving investor grievances.

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