Q: Discuss the Constitution of Stakeholders Relationship Committee ?

Ans: Companies Act also mentions the Stakeholders Relationship Committee - this must be constituted by all companies which have more than 1000 holders of securities (shares, debentures or other securities).

Stakeholder's Relationship Committee is one of the important committees within the organization responsible for looking after the interest of shareholders, debenture holders & other security holders; and. resolving the grievances of such security holders.

The size of the committee can be determined by the board however, it is essential that the chairperson is a non-executive director (that is, someone who is not involved in day-to-day operations of the company and is not an employee of the company).

An independent director must comply with other functions and duties mentioned under Code of Conduct provided under Schedule IV of the Companies Act, 2013.

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