CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights
Himalaya Textiles Ltd has 1,450 security holders, including shareholders and debenture-holders, during the financial year. Its board has formed a Stakeholders Relationship Committee. Under Section 178 of the Companies Act, 2013, which of the following is the statutory function of this committee?
The Stakeholders Relationship Committee must consider and resolve the grievances of the company's security holders. Remuneration policy and senior management selection belong to the Nomination and Remuneration Committee, while advising a liquidator is the role of a Tribunal-appointed advisory committee in winding up.
- AConsider and resolve the grievances of security holders of the companyCorrect
- BRecommend the remuneration policy for directors and key managerial personnel
- CIdentify persons qualified to be appointed in senior management
- DAdvise the Company Liquidator on matters directed by the Tribunal
Explanation
Section 178(6) states that the Stakeholders Relationship Committee shall consider and resolve the grievances of security holders. Remuneration policy and identifying senior management are functions of the Nomination and Remuneration Committee. The advisory committee advising a liquidator arises only in winding up under Section 287.
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