Q.Explain the Committees of the Board that a company may be required to constitute under the Companies Act, 2013.

The Act requires several different specialised Committees for prescribed classes of companies, each drawn from the Board and each responsible for a distinct area — audit, remuneration, stakeholder grievances, or CSR. …

The Companies Act, 2013 requires prescribed classes of companies to constitute the following Committees of the Board:

Audit Committee (Section 177): required for every listed public company and certain other prescribed public companies; minimum three directors, with independent directors forming a majority; oversees financial reporting, recommends auditor appointment/remuneration, and reviews financial statements and related-party transactions before the Board.

Nomination and Remuneration Committee (Section 178(1)): required for the same classes of companies as the Audit Committee; three or more non-executive directors, at least half independent; identifies and recommends persons for appointment as directors/senior management and formulates remuneration policy for them.

Stakeholders Relationship Committee (Section 178(5)): required once a company has more than 1,000 shareholders, debenture-holders, deposit-holders, or other security holders at any time during a financial year; chaired by a non-executive director; resolves grievances such as delayed share transfers or non-receipt of dividends/annual reports. …

Students often remember the Committee names but mix up which trigger (a holder count, a financial threshold, or 'every listed company') applies to which Committee — the Stakeholders Relationship Committee's trigger is a holder count (1,00 …