Audit committee - re

This query is : Resolved

Guest

Guest (Querist)

18 May 2012 I want to clarify the following Doubt:

If a Public limited company has three Directors in Audit committee and one is MD.
if, For the current year two of the Independent directors in the audit committee resigns. now what is the consequence if both of them resigns.
is there any necessary to appoint two directors for the Unlisted company. if yes with in how many days.
is there any change if the company is a public listed company.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

18 May 2012 In case of unlisted public company:

Composition:
At least 3 directors. Out of total 2/3 rd shall be directors other than MD & WTD.

i.e 2/3rd should be non-executive director. Remaining 1/3 may be executive director i.e MD or WTD.

In case of Listed Company: (Clause 49)

Composition:
At least 3 directors. Out of total 2/3 rd shall be Independent directors.

In your case, you should appoint atleast 2 independent director immediately to avoid listing non compliance. Listing agreement does not specify time line for appointment.

In case of unlisted company, appoint at least 2 non-executive director

Message likes : 2 times

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow