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CMA Intermediate · Business Laws and Ethics · Directors - Role, Responsibilities, Qualification, Appointment, Removal, Remuneration and Powers

Which of the following is a function that the Companies Act, 2013 assigns to the Nomination and Remuneration Committee?

The Nomination and Remuneration Committee formulates criteria for determining qualifications, positive attributes and independence of a director and recommends to the Board a policy on remuneration for directors, key managerial personnel and other employees. Handling security holders' grievances is the Stakeholders Relationship Committee's role.

  1. AResolving grievances of security holders of the company
  2. BFormulating criteria for qualifications, positive attributes and independence of a director and recommending a remuneration policy to the BoardCorrect
  3. CAppointing the statutory auditor of the company at the annual general meeting
  4. DFixing the dividend payable to equity shareholders

Explanation

Section 178(3) requires the committee to formulate criteria for qualifications, positive attributes and independence of a director and recommend a remuneration policy for directors, KMP and other employees to the Board. Grievance redressal belongs to the Stakeholders Relationship Committee.

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