Skip to content

CS Professional · Compliance Management, Audit and Due Diligence · Documentation and Maintenance of Records

Orion Foods Ltd's board is reviewing a certification note on selection of independent directors. Which of the following statements, if included in the note, is correct as per Section 150?

The data bank may be maintained by any body, institute or association notified by the Central Government that has expertise in creating and maintaining such a data bank. Selection from it does not dispense with approval of the appointment in general meeting.

  1. AThe data bank may be maintained by any body, institute or association notified by the Central Government and having expertise in creating and maintaining such a data bankCorrect
  2. BThe data bank must be maintained by the Registrar of Companies in every state
  3. CThe data bank may be maintained by any stock broker chosen by the company
  4. DSelection from the data bank removes the need for approval in general meeting

Explanation

Section 150(1) allows maintenance by any body, institute or association notified by the Central Government with expertise in creating and maintaining such a data bank. Approval in general meeting is still required under Section 150(2), so the last option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Documentation and Maintenance of Records shows your real accuracy, how long you take and where you lose marks.

Practise Documentation and Maintenance of RecordsFree diagnostic mock

More Documentation and Maintenance of Records questions