Audit Committee

Following receipt of queries and suggestions from stakeholders, it has been decided to amend Rule 6 of the Companies (Meetings and Powers of Board) Rules, 2014. This will provide additional time for companies in constituting Audit Committees, and Nomination and Remuneration Committees till 31st March, 2015.

Government of India

Ministry of Corporate Affairs

NOTIFICATION                                 

Dated 12^th June, 2014

G.S.R…….. – In exercise of the powers conferred under sections173, 175, 177, 178, 179,184, 185, 186, 187, 188, 189 and section 191 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules to amend the Companies (Meetings and Powers of Board) Rules, 2014, namely:‑

1. (1) These rules may be called the Companies (Meetings and Powers of Board) Amendment Rules, 2014

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Meetings and Powers of Board) Rules, 2014, in rule 6, after the explanation, the following shall be inserted, namely:‑

“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”.

[F.No.1/32/2013 -CL-V Pt.]

(Amardeep Singb Bhatia) Joint Secretary to the Govt. of India

Note:- The principal notification was published in the Gazette of India vide No. G.S.R. 265(E) dated 31.03.2014.