is there a difference between compensation commitee and remuneration committee?
For what purposes compensation committee is required to be formed?
If a company has remeneration committee is it still required to form compensation committee?
Anshu Shrivastava (company secretary) (143 Points)
24 April 2012is there a difference between compensation commitee and remuneration committee?
For what purposes compensation committee is required to be formed?
If a company has remeneration committee is it still required to form compensation committee?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 24 April 2012
Hi,
Compensation Committee has no recognisation in law and not a mandatory one.
However Schedule XIII has recognized Remuneration Committee but it is also not mandatory. Remuneration Committee is required only if you are planning to follow sch XIII and pay remuneration to your directors as per Sch XIII.
As per general texture of Committee concept we can form committee for any kind of corporate purpose.
Regards
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 24 April 2012
However you may find some reference regarding Compensation Committee in SEBI ESOP Guidelines. Lots of companies in India have also followed the concept of forming Remuneration cum Compensation Committee to serve dual purpose to handle Sch XIII and ESOPs, if any.
Regards
Anshu Shrivastava
(company secretary)
(143 Points)
Replied 24 April 2012
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