Skip to content

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

A Selection Committee under the Companies Act, 2013 is meeting to recommend a Technical Member of the NCLAT. The members present are split two against two on a candidate. Who resolves the deadlock, and how?

The Chairperson of the Selection Committee, who is the Chief Justice of India or his nominee, holds a casting vote when votes are equal. The Convener, the MCA Secretary, only convenes the committee and has no casting vote.

  1. AThe Secretary, Ministry of Corporate Affairs, as Convener, by a casting vote
  2. BThe Chairperson of the Committee, by a casting voteCorrect
  3. CThe Secretary, Ministry of Law and Justice, by a casting vote
  4. DThe meeting is void and the Central Government must appoint without recommendation

Explanation

Section 412(2A) provides 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 Convener role of the MCA Secretary is only administrative and carries no casting vote.

Did you get it right without looking?

One question tells you little. A timed set on Legislative Framework of Corporate Governance in India shows your real accuracy, how long you take and where you lose marks.

Practise Legislative Framework of Corporate Governance in IndiaFree diagnostic mock

More Legislative Framework of Corporate Governance in India questions