Skip to content

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

Aarav Industries Ltd argues that the appointment of a Member of the NCLT is invalid because one seat on the Selection Committee was vacant when it made its recommendation. Which position is correct under the Companies Act, 2013?

The appointment stands. The Act says no appointment of Tribunal or Appellate Tribunal Members is invalid merely because of a vacancy or defect in the Selection Committee's constitution. No ratification or special condition applies, whichever seat was vacant.

  1. AThe appointment is invalid because the committee must be fully constituted
  2. BThe appointment is valid only if the vacancy was of the Law Secretary
  3. CThe appointment is valid, as no appointment is invalid merely due to a vacancy or defect in the committee's constitutionCorrect
  4. DThe appointment is valid only if ratified by the Chief Justice of India within one year

Explanation

Section 412(5) states that no appointment of Members of the Tribunal or Appellate Tribunal is invalid merely because of a vacancy or a defect in the constitution of the Selection Committee. No ratification is required, and the nature of the vacancy does not matter.

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