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

Meera Foods Ltd's Board report is being finalised. The directors propose to put the risk management policy on the website and cover it in the report only by giving the web-address, relying on the website proviso to section 134(3). Which statement is correct?

The website proviso applies only to the clause (e) and clause (o) policies. The Board's report must still contain the clause (n) statement on development and implementation of the risk management policy, including risks that may threaten the company's existence, so a web link alone is not enough.

  1. AThe proviso covers only policies under clauses (e) and (o), so the report must still carry the statement on risk management policy development and implementation required by clause (n)Correct
  2. BThe proviso covers every clause of section 134(3), so a web link suffices for risk management
  3. CThe risk management statement is needed only if the policy is not on the website
  4. DThe proviso applies to clause (n) but requires auditor certification

Explanation

The second proviso expressly refers to the policy under clause (e) or clause (o) only. Clause (n) needs a statement in the report on the development and implementation of a risk management policy, including elements of risk that may threaten the company's existence. A web link alone does not replace it.

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