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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Legislative Framework of Corporate Governance in India

A Selection Committee for appointing Technical Members of the Appellate Tribunal meets with all four members present. Two members vote for a candidate and two vote against. Who resolves the deadlock under the Companies Act, 2013?

The Chairperson of the Selection Committee, who is the Chief Justice of India or his nominee, has a casting vote when votes are equal. The Secretary of the Ministry of Corporate Affairs is merely the Convener and has no such casting vote.

  1. AThe Secretary in the Ministry of Corporate Affairs, as Convener, who has a casting vote
  2. BThe Chairperson, who has a casting voteCorrect
  3. CThe Secretary in the Ministry of Law and Justice, as the junior-most member
  4. DThe matter must be referred to the Central Government for decision

Explanation

Section 412(2A) says that where votes are equal, the Chairperson of the Selection Committee has a casting vote. The Chairperson is the Chief Justice of India or his nominee. The Secretary, MCA, is only the Convener under sub-section (3), which gives no casting vote.

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