Skip to content

CS Professional · Drafting, Pleadings and Appearances · Art of Opinion Writing

Kaveri Foods Pvt. Ltd. receives a written legal opinion from a practising professional stating that a proposed related-party transaction needs board approval. The Managing Director says the opinion binds the Registrar of Companies and the Tribunal. Which statement is correct?

The opinion is merely advisory. It carries the weight of the reasoning behind it, but it does not bind the Registrar, the Tribunal or any court, which decide independently. Signing it, stamping it or acting on it does not give it the force of an order.

  1. AThe opinion is only advisory and does not bind the ROC, the Tribunal or the courtsCorrect
  2. BThe opinion binds the ROC once it is signed
  3. CThe opinion binds the Tribunal if it is on stamp paper
  4. DThe opinion becomes a court order if the company acts on it

Explanation

A legal opinion is advisory in nature. Only the client may choose to act on it. Regulators and adjudicating bodies decide independently, and neither stamp paper nor the company's reliance converts it into an order.

Did you get it right without looking?

One question tells you little. A timed set on Art of Opinion Writing shows your real accuracy, how long you take and where you lose marks.

Practise Art of Opinion WritingFree diagnostic mock

More Art of Opinion Writing questions