company Audit

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CA.Ritu Agarwal (Querist)
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09 April 2009 What are the requirements of formation of Audit Committee in Limited Comapy and also give the criteria for formation of Managerial Remuneration Committee.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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09 April 2009 Audit committee should have 3 members. Independent Director should be the chairman of the Committee. Other 2 memebrs shall be from the other directors. The committee should meet atleast 4 times a year and should review the internal audit reports, internal controls and Balance sheet before submitting to the full board.

As of now remuneration committee is not compulsiory. However if the comany wants to form it should have 3 memebrs. Chairman should be independent director. Other 2 members shall be from non executive directors.