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For the Board of Arvind Polymers Ltd, the company secretary prepares a quarterly note stating the status of compliance with the Companies Act, 2013, the rules made under it, and the FEMA and labour laws applicable to the company. Which statement best describes this activity under Section 205?

It is a function under Section 205(1)(a). The company secretary reports to the Board about compliance with the Companies Act, the rules and other laws applicable to the company, so FEMA and labour laws fall within it. The Board's own duties remain unaffected.

  1. AIt is outside Section 205 because the Section covers only Companies Act compliance
  2. BIt is a function under Section 205(1)(a): reporting to the Board about compliance with the Act, the rules and other applicable lawsCorrect
  3. CIt is a function that transfers the Board's compliance responsibility to the secretary
  4. DIt is permitted only if the company is a listed company

Explanation

Section 205(1)(a) requires the secretary to report to the Board about compliance with the Act, the rules and other laws applicable to the company. So FEMA and labour laws are covered. Section 205(2) says the section does not affect the duties of the Board, so responsibility is not shifted.

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