Sir director can be member in 10 audit committee and 10 stakeholder committee. Provision says membership in audit committee and stakeholder rel committee alone to be considered. Have i interpreted it right?

Questions › Category: CA-Final Corporate Governance › Sir director can be member in 10 audit committee and 10 stakeholder committee. Provision says membership in audit committee and stakeholder rel committee alone to be considered. Have i interpreted it right?

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Kratika Gupta asked 7 years ago

1 Answers

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Ravi Staff answered 7 years ago

Yes above interpretation is proper.

LODR
26. (1) A director shall not be a member in more than ten committees or act as chairperson of more than five committees across all listed entities in which he is a director which shall be determined as follows:
(a) the limit of the committees on which a director may serve in all public limited companies, whether listed or not, shall be included and all other companies including private limited companies, foreign companies and companies under Section 8 of the Companies Act, 2013 shall be excluded;
(b) for the purpose of determination of limit, chairpersonship and membership of the audit committee and the Stakeholders’ Relationship Committee alone shall be considered.