Companies Act - Audit Committees and Remuneration Committees to be Constituted
AS per Rule 6 of the Companies (Meetings and Powers of Board) Rules, 2014, the Board of Directors of all 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.
Now the Rules are amended to stipulate that the Audit Committee and the Nomination and Remuneration Committee shall be constituted within one year from the commencement of these rules or appointment of independent directors by them, whichever is earlier.