LALITHA KANNAN

Sec 177 (3) requires applicable companies to re-constitute the existing Audit committee within one year of the commencement of the Act in accordance with Sec 177 (2). If the audit committee constituted before the commencement of the Act complies with the requirements of Section 177(2) for constitution purposes and 177(4) for 'terms of reference' it can be argued that no re-constitution is required. Since no such provision exists for the other two committees they have to be re-constituted immedietly on the commencement of the Act.