Q.A company is required to constitute a Stakeholders Relationship Committee once it has more than how many shareholders, debenture-holders, deposit-holders, or other security holders at any time during a financial year? (A) 100
(B) 500
(C) 1,000
(D) 5,000

This Committee exists specifically to handle grievances at scale, and the Companies Act sets a clear numerical trigger for when a company must form it. …

Section 178(5) of the Companies Act, 2013 requires a company to constitute a Stakeholders Relationship Committee if, at any time during a financial year, it has more than 1,000 shareholders, debenture-holders, deposit-holders, or other security holders.

(A) 100 is far too low — no such trigger exists at this figure — incorrect.

(B) 500 is also not the statutory figure — incorrect. …

Students sometimes confuse this holder-count trigger with the very different financial thresholds (net worth/turnover/net profit) that trigger the CSR Committee requirement under Section 135 — the Stakeholders Rel …