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CS Executive · Company Law and Practice · Introduction to Company Law

Before the Companies Act, 2013 Tribunal and Appellate Tribunal were constituted, Mr. Rao was a Member of the Company Law Board. Section 466 is applied to him. Which statement is correct?

Under section 466, the Company Law Board is dissolved on constitution of the Tribunal and Appellate Tribunal. Until then, its members who meet the Act's qualifications and requirements function as President, Chairperson or Member of those Tribunals. Others vacate office without any compensation.

  1. AHe must vacate office immediately when the Act is enacted, with compensation
  2. BUntil the Tribunals are constituted, if he fulfils the qualifications and requirements under the Act, he functions as President, Chairperson or Member of the Tribunal or Appellate TribunalCorrect
  3. CHe automatically becomes President of the Tribunal irrespective of qualifications
  4. DHe continues indefinitely as a Company Law Board member because the Board is never dissolved

Explanation

Section 466(1) dissolves the Company Law Board on constitution of the Tribunal and Appellate Tribunal. Under the first proviso, until then, qualified members function in the new roles. Those not covered vacate office without compensation under sub-section (2).

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