Jagadiswar Rao (1 Points)
09 August 2018Hi,
All my querry is "Can CEO and/or CFO of the private company which is required to constitute audit committee as per Companies act be a member of Audit Committeee and take part in proceedings of the audit committee. The CEO and CFO who are also Executive directors of the company and both are holding 25% stake individually.
Thanking you,
Jagadish
Pranjali
(intern)
(2216 Points)
Replied 10 August 2018
No, the audit committee is supposed to be a composition of 'outside independent directors' so they can't be a part of it.
Shrikant
(Associate)
(350 Points)
Replied 04 December 2018
Audit committee shall consist of a minimum of three directors with independent directors forming a majority as per Section 177 (2) of the Companies Act, 2013. So number of members in Audit Committee should be capped properly so that independent directors will form the majority in the said committee.
CAclubindia
