Lakshmikumaran & Sridharan 律师事务所An ISO 9001 / 27001 certified law firm

Committees to be constituted within one year

17 June, 2014

Public companies with a paid up capital of Rs. 10 crore or more, or having turnover of Rs. 100 crore or more, or having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding Rs. 50 crore and/or more, and which were not required to constitute Audit Committee or the Nomination and Remuneration Committee under the erstwhile Companies Act, 1956, are now required to constitute same within specified time.

As per amendments by Ministry of Corporate Affairs Notification dated 12-6-2014 issued in this regard, the time period is one year from notification of Companies (Meetings and Powers of Board) Rules, 2014 (i.e. till 31-3-2015) or within one year of appointment of Independent Directors by such companies. Rule 6 of the Rules has been amended for the purpose.
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