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CSEET · Business Laws and Management · Elements of Company Law

Consider the statements about the NCLT under Section 408: I. Its members are appointed by the Central Government by notification. II. It exercises powers conferred on it by the Companies Act, 2013 or by any other law for the time being in force. Which is correct?

Both statements are correct. Section 408 provides that the Central Government appoints the Tribunal's members by notification, and that the Tribunal exercises powers and functions conferred on it by the Companies Act or by any other law for the time being in force.

  1. AOnly I is correct
  2. BOnly II is correct
  3. CBoth I and II are correctCorrect
  4. DNeither I nor II is correct

Explanation

Section 408 says the members are appointed by the Central Government by notification. It also says the Tribunal exercises powers conferred by or under the Act or any other law for the time being in force. Both statements are therefore correct.

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