*The Board of directors of every listed company every listed public companyand a company covered under rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014 shall constitute an ‘Audit Committee’ and a ‘Nomination and Remuneration Committee of the Board.
* The Board of directors of every listed companies and the following classes of companies shall constitute an Audit Committee and a Nomination and Remuneration Committee of the Board
(i) all public companies with a paid up capital of ten crore rupees or more;
(ii) all public companies having turnover of one hundred crore rupees or more;
(iii) all public companies, having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding fifty crore rupees or more.
Explanation. – The paid up share capital or turnover or outstanding loans, or borrowings or debentures or deposits, as the case may be, as existing on the date of last audited Financial Statements shall be taken into account for the purposes of this rule.
Provided that public companies covered under this rule which were not required to constitute Audit Committee under section 292A of the Companies Act, 1956 (1 of 1956) shall constitute their Audit Committee within one year from the commencement of these rules or appointment of independent directors by them, whichever is earlier:
Provided further that public companies covered under this rule shall constitute their Nomination and Remuneration Committee within one year from the commencement of these rules or appointment of independent directors by them, whichever is earlier.
Rule 6A. Omnibus approval for related party transactions on annual basis.-
All related party transactions shall require approval of the Audit Committee and the Audit Committee may make omnibus approval for related party transactions proposed to be entered into by the company subject to the following conditions, namely:-
Substituted vide Companies (Meetings of Board and its Powers) Second Amendment Rules, 2017 . To view the notification, Click Here
Substituted vide Companies (Meetings of Board and its Powers) Amendment Rules, 2018 dated 07.05.2018 . To view the notification, Click Here
* Substituted vide Companies (Meetings of Board and its Powers) Second Amendment Rules, 2017 . To view the notification, Click Here
Provided Proviso inserted by notification no. G.S.R. 398(E) dated 12 June 2014. To view the notification, Click Here
Provided further Proviso inserted by notification no. G.S.R. 398(E) dated 12 June 2014. To view the notification, Click Here
Rule 6A. Inserted vide Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015 vide notification dated 14th December,2015. To view the notification, Click Here
