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Co act 2013 sec 177 (9) vigil mechansim

AA (STUDENT) (24 Points)

11 January 2016

does rule 7(1) of sec177 (9) apply to pvt ltd co`s..very very serious question regarding vigil mechnism.

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2 Replies

Mayur Kashinpure (Student) (341 Points)
Replied 11 January 2016

Originally posted by : AA
	does rule 7(1) of sec177 (9) apply to pvt ltd co`s..very very serious question regarding vigil mechnism.

Section 177(9) read with Rule 7 of Companies (Meetings of Board and its Powers) Rules, 2014 provides that

Listed companies;
Companies which accept deposits from the public;
Companies which have borrowed money from banks and public financial institutions in excess of fifty crore rupees.

shall establish a vigil mechanism for their directors and employees to report their genuine concerns or grievances.

If you fulfill any of the above criteria, vigil mechanism has to be established in your company irrespective of the fact that it is a private company.