Remuneration committee

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CA, CS Kavit S Shah (Querist)
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13 July 2013 Dear Sir,

My Company is Unlisted public Company. So Please let me know whether existing executive Director can form remuneration Committee by appointing himself as a member of Remuneration Committee or they have to appoint Non-Executive Director by Filing Form 32.
And in addition to above whether it is necessary for non-executive director to become members of the Company.

Regards,
Kavit S Shah

Ajay Mishra

Ajay Mishra (Expert)
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13 July 2013 Hi

Meaning of Remuneration Committee as explained under Explanation IV to the Section II of Part II to the Schedule XIII, has been substituted by Notification No GSR 70 (E), dates 08.02.2011, namely:-
For the purpose of this section, “Remuneration Committee” means:
(i) In respect of a listed company, a committee which consists of at least three non-executive independent directors including nominee director or nominee directors, if any; and
(ii) In respect of any other company, a Remuneration Committee of directors.

So, you can appoint executive director in remuneration committee as a member of committee of unlisted public company.

Ajay Mishra

Ajay Mishra (Expert)
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13 July 2013 Generally not, Please check what you company's article says on it.

If your article not have any condition for qualification shares of director, then no need to be a member of the company for becoming member of committee as well as member of Board.

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CA, CS Kavit S Shah

CA, CS Kavit S Shah (Querist)
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15 July 2013 Thanks a lot sir for your reply

Regards,
Kavit S Shah

Ajay Mishra

Ajay Mishra (Expert)
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15 July 2013 My Pleasure...........