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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Legislative Framework of Corporate Governance in India

Meridian Textiles Ltd has challenged an NCLT order. The Central Government is about to appoint the Chairperson of the NCLAT. Under the Companies Act, 2013, how must this appointment be made?

The chairperson of the Appellate Tribunal is appointed after consultation with the Chief Justice of India. The Selection Committee route is meant for Tribunal Members and Technical Members of the Appellate Tribunal, not for the chairperson, who is treated like the President and Judicial Members.

  1. AAfter consultation with the Chief Justice of IndiaCorrect
  2. BOn the recommendation of a Selection Committee chaired by the Secretary, Ministry of Corporate Affairs
  3. CBy the Chairperson of the Tribunal alone, without any consultation
  4. DOn the recommendation of the Securities and Exchange Board of India

Explanation

Section 412(1) requires the President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal to be appointed after consultation with the Chief Justice of India. The Selection Committee route applies to Members of the Tribunal and Technical Members of the Appellate Tribunal, so the second option is wrong.

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