||Companies Act, 2013
||Companies Act, 1956
||Every listed companies and
shall have to constitute Audit Committee.
- all public companies with a paid up capital of Rs. 10 Crores or more;
- all public companies having turnover of Rs. 100 Crores or more;
- all public companies, having in aggregate, outstanding loans or borrowings or debentures or deposits exceeding Rs. 50 Crores or more,
|Every Public Company having paid up capital of not less than Rs. 5 Crores shall have to constitute Audit Committee.
- Minimum of 3 directors.
- Independent Directors forming a majority.
- Majority of members including chairperson shall be persons with ability to read and understand the financial statements.
|The Audit Committee shall consist of not less than 3 directors and such number of other directors as the Board may determine of which 2/3rd of the total number of members shall be directors, other than Managing or Whole-time Director.
|Right to attend Meeting of Audit Committee
||The auditors of a company and the KMP shall have a right to be heard in the meetings of the Audit Committee when it considers the auditor’s report but shall not have the right to vote.
||The auditors and the director-in-charge of finance shall attend and participate at the meeting of the Audit Committee but shall not have right to vote.
||The company shall be punishable with fine of Rs. 1 Lakh to Rs. 5 Lakhs and every officer of the company who is in default shall be punishable with imprisonment up to 1 year or with fine of Rs. 25,000/- to Rs. 1 Lakh, or with both.
||The company, and every officer who is in default, shall be punishable with imprisonment up to 1 year, or with fine of Rs. 50,000/-, or with both.