CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights
Meenakshi Foods Ltd, a listed company, has adopted a whistle-blower policy but has kept it only in an internal circular. The company has a website. Which disclosure requirement under the Companies Act, 2013 has it missed?
Details of establishing the vigil mechanism must be disclosed on the company's website, if it has one, and in the Board's report. Keeping the policy only in an internal circular does not satisfy this disclosure requirement.
- ADetails of establishing the vigil mechanism must be disclosed on the website and in the Board's reportCorrect
- BThe policy must be filed only with the Registrar and need not be disclosed elsewhere
- CThe policy details must be disclosed only in the notice of the annual general meeting
- DThe policy must be disclosed only in the auditor's report
Explanation
The proviso to section 177(10) says the details of establishment of the mechanism shall be disclosed on the company's website, if any, and in the Board's report. An internal circular alone does not meet this.
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