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CS Executive · Setting Up of Business, Industrial and Labour Laws · Micro, Small and Medium Enterprises

Regarding the composition of a Micro and Small Enterprises Facilitation Council under the MSMED Act, 2006, which statement is correct?

The Council consists of not less than three but not more than five members. The Director of Industries in the State Government department concerned, or an officer not below that rank, is the Chairperson. The State Government prescribes the detailed composition and procedure.

  1. AIt has exactly seven members, chaired by a bank representative
  2. BIt has not less than three but not more than five members, with the Director of Industries or an officer not below that rank as ChairpersonCorrect
  3. CIt has not less than five members, chaired by an industry association office-bearer
  4. DIts composition is fixed by the Central Government by notification

Explanation

Section 21(1) provides for not less than three and not more than five members, and section 21(2) makes the appointee under clause (i), the Director of Industries or an officer not below that rank, the Chairperson. The detailed composition and procedure are prescribed by the State Government, not the Centre.

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