ALLOTMENT COMMITTEE

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2010 if we have a public listed company and it wants to appoint allotment committee, then who can be the members is any requirement forminimum no. of membrs and quorum for it ??

udit sharma

udit sharma (Expert)
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20 December 2010 Hi...

Nothing has been prescribed under the Listing Agreement pertaining to such 'Allotment Committee' .

In my opinion, constitution of such committee should be like Audit Committee, Shareholder's Grievance Committee, Remuneration Committee etc. That is to say, such committee should consist of at least 3 Directors of whom not less than 2/3rd shall be Independent Directors and the Chairman of such committee must also be an Independent Director.

However, this is my personal opinion.

God Bless

Udit Sharma

Ankur Garg

Ankur Garg (Expert)
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20 December 2010 Very much agree with the expert...

As constitution of allotment committee is not a statutory requirement as per Listing Agreements, so you are free to adopt any suitable constitution.

However i would also advice you to appoint independent dir as member of allotment committee.

Regards

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Ankur Garg

Ankur Garg (Expert)
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20 December 2010 Oops...i have one more suggestion. You may give the power of allotment to any existing committee by passing necessary resolution for change in terms of reference of the existing committee.

In this way you don't have to constitute a new committee.

Regards

Jayashree S Iyer

Jayashree S Iyer (Expert)
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21 December 2010 Agree with the experts. It is advisable to have Director-Finance (in-charge of Finance and Secretarial functions) and two other independant directors as member of allotment committee.