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

Neha, a company secretary, is asked who determines the terms and conditions of service of the Director, experts and other officers of the SFIO. Which statement is correct under the Companies Act, 2013?

Under Section 211(5), the terms and conditions of service of the SFIO Director, experts, and other officers and employees are such as may be prescribed. They are not set by the Director, the tribunal, or individual negotiation.

  1. AThey are decided by the Director of the SFIO at his discretion
  2. BThey are negotiated individually with each expert
  3. CThey are such as may be prescribedCorrect
  4. DThey are fixed by the NCLT

Explanation

Section 211(5) states that the terms and conditions of service of the Director, experts and other officers and employees shall be such as may be prescribed. The Director or NCLT has no such power.

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