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audit committe

Arpit (article) (116 Points)

21 June 2010

what is the frequency of audit committe in a financial year

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Ankur Garg (Company Secretary and Compliance Officer) (114778 Points)
Replied 21 June 2010

Hi,

For a listed company---

The audit committee should meet at least four times in a year and not more than four months shall elapse between two meetings. The quorum shall be either two members or one third of the members of the audit committee whichever is greater, but there should be a minimum of two independent members present.

For Unlisted public company, not subsidiary of a Listed Company---

The Law is silent. However let me tell you my practice. As per my suggestion 2 AC meetings are enough in every 6 months.

For Unlisted public company, subsidiary of a Listed Company---

The Law is silent. As per my suggestion 4 AC meetings should be held for every quarter because first AC of subsidiary company approve the quarter result of subsidiary company and then forward the same to the board of holding company for their consideration. Am following the same practice keeping in view good corporate governance practice read with Listing Agreements.

Views of other members solicited.

Thanks