The law also does not provide for specific complaints that can be considered by the stakeholder committee and, while this may have both advantages and disadvantages, it is up to the House to decide on the priority for a particular appeal by an interest group. Some examples may be the non-payment of dividends or transactions. The use of these complaints is already legally available, but the creation of a stakeholder relations committee helps resolve these complaints at an earlier and less controversial level. Shareholders can go to the board or file their complaint, and if it is something from a procedural point of view, it could be managed by the company itself, and if it is something that requires the contributions of a professional, the board of directors may decide to use the services of such a professional to resolve the complaint. The main advantage of such a stakeholder committee is the non-contradictory approach that would be taken by the company to solve problems and ensure the proper management of the company. Section 178 (5) of the Act provides for the creation of a stakeholder relations committee. It is a board of directors or a committee that is formed at the board level of a company. The board of directors of a company made up of more than a thousand shareholders, bondholders, deposit holders and other security holders will be made up of a stakeholder relations committee. The law allowed all security holders to qualify for the number of one thousand security holders with shareholders, bondholders and deposit holders.
The bonds were defined to include bonds, debt or any other instrument of a company that generated debt, whether or not it was a charge on the company`s assets. Deposits have been defined in such a way that they include obtaining money in the form of a deposit or loan or in some other form by a company, but do not include the categories of the amount that can be taxed in accordance with the Reserve Bank of India. The aim is to enable a company (whether public or private) to set up a stakeholder relations committee for better governance and management. This stakeholder committee is made up of a non-executive chairman and all other members who can be decided by the board of directors.