CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights
The board of Nilgiri Tea Ltd, with 1,500 security holders, is drafting the terms of its Stakeholders Relationship Committee. Which function falls within the role given to the committee by Section 178?
The committee considers and resolves grievances of security holders. Section 178(6) gives it this task. Remuneration policy, identifying senior management candidates and specifying how board performance is evaluated are functions of the Nomination and Remuneration Committee, not the Stakeholders Relationship Committee.
- ARecommending the remuneration policy for key managerial personnel
- BConsidering and resolving grievances of security holders of the companyCorrect
- CIdentifying persons qualified for senior management appointment
- DSpecifying the manner of evaluating board performance
Explanation
Section 178(6) assigns the Stakeholders Relationship Committee the task of considering and resolving security holders' grievances. The other three functions, remuneration policy, identifying senior management and evaluation, belong to the Nomination and Remuneration Committee under Section 178(2) and (3).
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