Section 177(9) of Companies Act, 2013 read with Rule 7 of Companies (Meetings of Board and its Powers) Rules, 2014 the following companies are required to establish a vigil mechanism for their directors and employees to report their genuine concerns or grievances.
(a) every listed company;
(b) the Companies which accept deposits from the public;
(c) the Companies which have borrowed money from banks and public financial institutions in excess of fifty crore rupees.
Further the sub-section (10) provides that the details of establishment of such mechanism shall be disclosed by the company on its website, if any, and in the Board’s report.
0 Comments
Post a Comment