CMA Intermediate · Corporate Accounting and Auditing · National Financial Reporting Authority (NFRA)
As per section 132(3) of the Companies Act, 2013, the NFRA consists of a chairperson and other members. What is the maximum number of such other members, who may be part-time and full-time?
The maximum number of other members is fifteen. Section 132(3) provides for a chairperson plus such other members, consisting of part-time and full-time members as prescribed, not exceeding fifteen. The chairperson is appointed by the Central Government and is separate from this count.
- ATen
- BFifteenCorrect
- CTwenty
- DEleven
Explanation
Section 132(3) says the NFRA consists of a chairperson and such other members, part-time and full-time, not exceeding fifteen, as may be prescribed. The chairperson is additional to this limit, so the cap on other members is fifteen, not any other number.
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