CMA Intermediate · Business Laws and Ethics · Internal Financial Control for Financial Reporting
As per section 132 of the Companies Act, 2013, the NFRA consists of a chairperson and other members. What is the limit on the number of such other members?
The NFRA has a chairperson and other members not exceeding fifteen, who may be part-time or full-time as prescribed. This limit is laid down in section 132(3) of the Companies Act, 2013. The chairperson is appointed by the Central Government and must have expertise in accountancy, auditing, finance or law.
- ANot exceeding nine
- BNot exceeding fifteenCorrect
- CNot exceeding twelve
- DNot exceeding twenty
Explanation
Section 132(3) provides for a chairperson who is a person of eminence with expertise in accountancy, auditing, finance or law, plus other members not exceeding fifteen, both part-time and full-time as prescribed. The other figures are not in the section.
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