COMPLIANCES OF LISTED PUBLIC COMPANY
Public Company whose shares are listed & traded on the stock exchange refers to as a listed company. Listed companies are the public limited joint-stock company whose shares get traded on the central stock market. Companies often go for public issues as one of the vital sources of raising funds.
Advantages of Listed Company
Following are the benefits of listing the company apart from the prestigious position the company gets when its shares are listed and traded on the stock exchange:
Statutory Provisions for Regulating Listed Companies
The following provisions govern these companies:
Section 91: Close Register of Members
a company can close the register of members, debenture holders, or any other security holder during the year for not more than 45 days. Register can’t be closed for more than 30 days at one time.
Section 92: Annual Return
Annual return has to be certified by Company Secretary in practice stating that annual return discloses the facts are correct & the company has fulfilled all the provisions applicable to the company. This is required to be done by the following companies:
Sec 93: Change in Shareholding Pattern
Every listed company has to file a return in form MGT-10 for every change in shareholding pattern of 2% or more in value or volume. Such change has to be filed within 15 days of the date of the change.
Sec 108: E-Voting
every listed company shall provide the facility to its shareholders to exercise their voting rights in the general meeting by electronic means if it has 1000 or more shareholders.
Sec 120: Maintenance of Record In Electronic Means
Every listed company with 1000 or more shareholders, debenture holders, or any security holders shall maintain its records in an electronic mode in a readable format, and it can’t be tampered or changed after affixing the DSC of an authorized person. Record includes:
2. Index agreement
3. Memorandum of association & article of association
4. Minutes of the meetings
Sec 121: Report on Annual General Meeting
Every listed company is required to prepare a report on its annual general meeting stating that the meeting is held, conducted &convened in proper order and as per the provisions of this act. A report has to be filed to ROC within 30 days of AGM in form MGT-15.
Sec 131: Director’s Report
A listed company needs to disclose in its director report about the:
Sec 136: Mode of Sending Financial Statements
Every company can dispatch its financial statements in the following ways:
Sec 138: Internal Auditor
Every listed company must have an internal auditor in its place who shall be a qualified Chartered Accountant, Cost Accountant, or Company Secretary. Audit committee fixes their remuneration, scope of work, roles & responsibilities, and periodic and timelines for conducting an internal audit.
Sec 139: Rotation of Auditors
every listed company shall have an individual auditor for only one term of 5 successive years and audit firm as its auditor for two terms of five consecutive years.
Sec 149(1): Woman Director
following class of companies has to mandatorily appoint at least one women director:
Sec 149(7): Certificate of Independence
The independent director has to give the declaration about his independence on the very first board meeting he attends as an independent director. If any change in its independence throughout the year, he has to declare the same on the very first board meeting he attends after such change.
Sec 151: Small Shareholder’s Director
A listed company has to compulsorily appoint the small shareholder’s director when it receives the notice from lower of these two:
Sec 177: Audit Committee
Following classes of companies has to constitute an audit committee:
Sec 178(1): Nomination & Remuneration Committee
Every listed company has to constitute a nomination & remuneration committee with at least 3 non-executive directors out of which there shall be the majority of independent directors.
Sec 178(2): STAKEHOLDERS RELATIONSHIP COMMITTEE
Every listed company that has more than 1000 shareholders has to appoint this committee necessarily with non-executive directors & chairperson.
Sec 203: KMP
Every listed company and public company with paid-up share capital of INR 10 Crore has to appoint mandatorily whole-time key managerial personnel.
Sec 204: Secretarial Audit
Every listed company shall get it done secretarial audit by a whole-time company secretary in practice. PCS gives it report in form MR-3, which has to be annexed with board report. Following classes of companies shall have to comply with this audit provision:
COMPLIANCE OF LISTED COMPANY AS PER SEBI (LODR) REGULATION 2015
There are certain monthly/quarterly/half-yearly/annual compliances of a listed company as per SEBI (LODR) regulations 2015.
REGULATION 7- APPOINTMENT OF NEW SHARE TRANSFER AGENT
REGULATION 7(3) - COMPLIANCE CERTIFICATE
REGULATION 13(3)- STATEMENT OF INVESTORS COMPLAINT
REGULATION 27(2)- CORPORATE GOVERNANCE
REGULATION 29- NOTICE
REGULATION 30- PRICE SENSITIVE INFORMATION
REGULATION 31- SHAREHOLDING PATTERN- WITHIN 21 DAYS FROM THE END OF QUARTER
REGULATION 33- FINANCIAL RESULTS- WITHIN DUE DATE DEPENDING UPON CASE TO CASE
REGULATION 34- ANNUAL REPORT-WITHIN 21 DAYS OF AGM
REGULATION 40(9)- CERTIFICATE FROM PCS- WITHIN ONE MONTH FROM THE END OF HALF-YEAR
REGULATION 42- NOTICE FOR RECORD DATE
REGULATION 43A- DIVIDEND DISTRIBUTION POLICY
REGULATION 44- VOTING RESULT- WITHIN 48 HOURS OF RESULTS
REGULATION 46- COMPANY WEBSITE
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