CSEET · Economic and Business Environment · Elements of Corporate Governance
Under Section 178 of the Companies Act, 2013, which committee of the Board is responsible for considering and resolving the grievances of security holders of the company?
The Stakeholders Relationship Committee considers and resolves the grievances of security holders of the company. The Nomination and Remuneration Committee handles director selection criteria, evaluation and remuneration policy, so it is not the body meant for security holders' complaints under Section 178.
- ANomination and Remuneration Committee
- BStakeholders Relationship CommitteeCorrect
- CCorporate Social Responsibility Committee
- DRisk Management Committee
Explanation
Section 178(6) states that the Stakeholders Relationship Committee shall consider and resolve the grievances of security holders. The Nomination and Remuneration Committee deals with appointment criteria and remuneration policy, not security holder grievances.
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