STAKEHOLDERS RELATIONSHIP COMMITTEE - tradecareer

               STAKEHOLDERS RELATIONSHIP COMMITTEE (SRC)

SRC provisions under Companies Act, 2013 [Section 178(5) of the Companies Act, 

2013]

Constitution: A company has to constitute a "Stakeholders Relationship Committee" 

where such company has more than 1000 shareholders, debenture-holders, deposit-

holders and any other security holders at any time during a financial year.

Note: The provisions of this section are not at all clear regarding the constitution of 

Stakeholders Relationship Committee.

Chairperson: The Chairperson of a Stakeholders Relationship Committee shall be a 

non-executive director or other member of the Board. This committee considers and 

resolves the grievances of security holders of the company.

Note: The Chairperson of each of the committees or in his absence, any other member 

of the committee duly authorised by him, shall attend the general meetings of the 

company.

SRC provisions under SEBI (Listing Obligation Disclosure Requirements), 2015

                                                                         


[Regulation 20 of SEBI (LODR) Regulations, 2015]

The listed entity shall constitute a Stakeholders Relationship Committee to specifically 

look into the mechanism of redressal of grievances of shareholders, debenture holders 

and other security holders.

Members: The company shall set up an SRC which shall comprise at least 3 directors, 

atleast one of whom shall be independent.

Chairperson: The Chairperson of this committee shall be a non-executive director. The 

Chairman of the SRC shall present at the AGM and answer the shareholders' queries in 

this regard.

Meeting: Members of the Stakeholders Relationship Committee shall meet atleast once 

in a year.

Additional Role of SRC under LODR

=> Resolving the grievances of the security holders of the listed entity including 

complaints related to transfer/transmission of shares, non-receipt of annual report,

non-receipt of declared dividends, issue of new/duplicate certificates, general 

meetings, etc.

=> Review of measures taken for effective exercise of voting rights by the shareholders.

=> Review of adherence to the service standards adopted by the listed entity in respect 

of various services being rendered by the Registrar & Share Transfer Agent.

=> Review of the various measures and initiatives taken by the listed entity for 

reducing the quantum of unclaimed dividends.

=> Ensuring timely receipt of dividend warrants/Annual Reports/statutory notices by 

the shareholders of the company.

Compliance: A listed entity is required to comply both with the Companies Act, 2013 as 

well as SEBI (LODR) Regulations, 2015. Whereas, other entities who need to constitute 

Stakeholders Relationship Committee will comply with Companies Act, 2013.


Comments

Post a Comment

Popular posts from this blog

Benefits of incorporating NBFC - tradecareer.

Image
                              BENEFITS OF INCORPORATING NBFC: According to research and studies it is proved that NBFCs are outperforming banks. The continued better performance from NBFCs has given rise to an uptick of 15% customer satisfaction as compared to the banking customers. The same is agreed by the RBI according to the recent Financial Stability Report. Banks and NBFCs are financial intermediaries and the services offered by them are pretty much the same as banks.However, the benefits of incorporating an NBFC and carrying on its activities are listed below: 1.Competitive Interest Rates: Rate of interest is one of the main aspects of all types of loans. Non-Banking Financial Sectors have started to concentrate on this area in the recent decades and have brought down the interest rates to either equal to bank lending rates or at times even lower to bank rates.  With all the other benefits when rate o...
Read more

What are the types of NBFC - tradecareer.

Image
                    Types  of non banking financial company  1. Asset Finance Company (AFC) 2. Investment Company (IC) 3. Loan Company (LC) 4. Infrastructure Finance Company (IFC) 5. Systemically Important Core Investment Company 6. Infrastructure Debt Fund - Non- Banking Financial Company (IDF-NBFC) 7. Non-Banking Financial Company - Micro Finance Institution (NBFC-MFI) 8. Non-Banking Financial Company – Factors (NBFC-Factors) 9. Mortgage Guarantee Companies (MGC) 10. NBFC I. Asset Finance Company (AFC): An AFC is a company which is a financial institution carrying on as its principal businessas the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipment, moving on own power and general purpose industrial machines. Principal business for this purpose is defined as aggregate of financing real/physical assets...
Read more

The SEBI - securities & exchange board of india.,tradecareer.blogspot.com

Image
                     The securities and exchange board of India                                                                    INTRODUCTION   SEBI is a body corporate having perpetual succession and a common seal with power to  acquire, hold and dispose of property, both movable and immovable and to contract,  sue and be sued in its own name. Its Head Office is at Mumbai and is empowered to establish its offices at other places in  India. SEBI presently has offices also in Ahmedabad, Jaipur, Kolkata, Guwahati,  Bhubaneswar, New Delhi, Chennai and Bengaluru.                                                     ...
Read more