Section 378U: Committee of directors
This section is for outlining the rules and procedures for forming and operating committees of directors in a Producer Company.
The section, clause by clause
What the section says
In plain terms
(1)The Board may constitute such number of committees as it may deem fit for the purpose of assisting the Board in the efficient discharge of its functions:
The Board can form as many committees as it thinks necessary to help it perform its duties efficiently, without delegating its powers or the Chief Executive's powers to any committee.
provisoProvided that the Board shall not delegate any of its powers or assign the powers of the Chief Executive, to any committee.
(2)A committee constituted under sub-section (1) may, with the approval of the Board, co-opt such number of persons as it deems fit as members of the committee: Provided that the Chief Executive appointed under section 378W or a director of the Producer Company shall be a member of such committee.
A committee can add members with the Board's approval, and must include the Chief Executive or a director of the Producer Company.
(3)Every such committee shall function under the general superintendence, direction and control of the Board, for such duration, and in such manner as the Board may direct.
Each committee works under the Board's supervision and control, for the duration and in the manner the Board decides.
(4)The fee and allowances to be paid to the members of the committee shall be such as may be determined by the Board.
The Board determines the fees and allowances paid to committee members.
(5)The minutes of each meeting of the committee shall be placed before the Board at its next meeting.
The committee's meeting minutes are presented to the Board at its next meeting.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.