CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights
Under Section 178(6) of the Companies Act, 2013, what is the function of the Stakeholders Relationship Committee?
The committee's function is to consider and resolve the grievances of security holders of the company, as stated in Section 178(6). Remuneration policy and senior management identification belong to the Nomination and Remuneration Committee, and advising a liquidator is the role of a Tribunal-appointed advisory committee.
- ATo recommend remuneration policy for directors and key managerial personnel
- BTo consider and resolve the grievances of security holders of the companyCorrect
- CTo identify persons qualified to be appointed in senior management
- DTo advise the liquidator on matters directed by the Tribunal
Explanation
Section 178(6) provides that the committee shall consider and resolve the grievances of security holders. Remuneration policy and identifying senior management are functions of the Nomination and Remuneration Committee under 178(2) and (3). An advisory committee to the liquidator arises under Section 287 in winding up.
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