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CS Professional · Internal and Forensic Audit · Forensic Audit: Laws and Regulations

Before the SFIO was formally established by notification under the Companies Act, 2013, a question arose about the status of the office set up by Government of India Resolution dated 2 July 2003. What is the legal position under Section 211?

The office set up under the Government of India Resolution of 2 July 2003 is deemed to be the SFIO for the purposes of Section 211 only until the SFIO is established by notification under sub-section (1). It is a transitional deeming provision, not a permanent one.

  1. AThat office has no legal standing until a fresh notification is issued
  2. BThat office is deemed to be the SFIO for the purposes of the section until the SFIO is established under sub-section (1)Correct
  3. CThat office functions only as an advisory body to the Registrar of Companies
  4. DThat office is deemed to be the SFIO permanently, even after a notification is issued

Explanation

The proviso to Section 211(1) says that until the SFIO is established under sub-section (1), the office set up under the 2003 Resolution is deemed to be the SFIO. The 'permanently' option is wrong because the deeming applies only until establishment by notification.

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