Given that we have just come to the close of our financial year 2014-2015, it is prudent for each of us BBG Chennai members to look back and check whether each of our companies and organisations have met with a few important compliance requirements as under. Please consider it these have been followed by your Company and if not, it would be advisable to set about ensuring immediate compliance with the same.
1. In relation to the law on Prevention of Sexual Harassment at the Workplace:
a. Constitute an Internal Complaints Committee with a minimum of four members, of which one must be a non-employee member with relevant expertise in law or social service or from an NGO;
b. Ensure that your company has a written anti-sexual harassment policy. In addition to this, ensure that the names and contact details of the Internal Complaints Committee members and the penal provisions under the law are clearly displayed on notice boards in every office or unit;
c. Train all your employees on the provisions of this law. This should be undertaken at 2 to 3 times a year. Also ensure you provide training to the ICC on how to conduct proceedings.
d. Annual Reporting – Certain details on sexual harassment complaints received need to be included in the Annual Report of the Company and in the report to the relevant District Officer. Ensure this is done.
2. In relation to CSR requirement under the Companies Act:
If your company has a net worth of Rs.500 crore or more, or a turnover of Rs. 1,000 crore or more or a net profit of Rs. 5 crore or more during any financial year, the Company needs to have in place a written Corporate Social Responsibility (CSR) Policy, form a CSR Committee from amongst the Board of Directors and ensuring that the 2% of its average net profits for last three years are spent on CSR initiatives (as specified in the Companies Act and rules). The spending should have been completed by 31 March 2015.
3. Resident Director:
Every company is required to have a resident director. Please ensure that the company has at least one director that is resident in India.
4. Woman Director:
Every listed company is required to have at least one woman director on the board of directors. It is prudent to ensure this appointment at the earliest if not already complied with.
In case you have any questions or comments on the above, please contact the author.
Hufriz Wadia, Partner, Kochhar & Co.
Director and ICC member of a few private companies.