CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Stakeholders Rights
Under the Companies Act, 2013, a listed company's vigil mechanism must contain which safeguard for persons using it?
The vigil mechanism must provide adequate safeguards against victimisation of persons who use it. This protects directors and employees reporting genuine concerns. The Act does not promise rewards or exclude complaints against directors.
- AAdequate safeguards against victimisation of persons who use the mechanismCorrect
- BA guarantee of monetary reward for every complaint
- CA bar on any complaint against directors
- DA requirement that complainants disclose identity to the whole board
Explanation
Section 177(10) states the vigil mechanism shall provide adequate safeguards against victimisation of persons who use it. The Act does not provide rewards, bar complaints against directors, or require identity disclosure to the board.
Did you get it right without looking?
One question tells you little. A timed set on Stakeholders Rights shows your real accuracy, how long you take and where you lose marks.
More Stakeholders Rights questions
- Himalaya Textiles Ltd has 1,450 security holders, including shareholders and debenture-holders, during the financial year. Its board has for…
- Kaveri Foods Ltd's Stakeholders Relationship Committee tried in good faith to settle a debenture-holder's grievance over a delayed interest …
- Kaveri Foods Ltd, a listed public company, has an NRC-recommended candidate, Ms. Rao, for director. A member proposes a different non-retiri…
- Meera Pharma Ltd is constituting its Stakeholders Relationship Committee. The board proposes Mr. Anand, the managing director, as chairperso…
- Bharat Agro Ltd, a listed public company, proposes an NRC of six members. Which composition satisfies Section 178(1)?
- Zenith Motors Ltd, a listed public company, has framed a remuneration policy under Section 178(3). What must it do regarding disclosure of t…