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

The Central Government wants to appoint Mr. Rao, a retired Chief Justice of a High Court, as a Judicial Member of the Appellate Tribunal, and Ms. Iyer, a chartered accountant with 26 years of experience in investment and accountancy, as a Technical Member. Which statement correctly describes the process and eligibility under the Companies Act, 2013?

Mr. Rao, as a Judicial Member, is appointed after consultation with the Chief Justice of India and qualifies as a former High Court Judge. Ms. Iyer, as a Technical Member, is appointed on the Selection Committee's recommendation and qualifies with at least twenty-five years of relevant experience.

  1. ABoth are appointed on the Selection Committee's recommendation; Mr. Rao is eligible as a person who has been a High Court Judge
  2. BMr. Rao is appointed after consultation with the Chief Justice of India and is eligible as a person who has been a High Court Judge; Ms. Iyer is appointed on the Selection Committee's recommendation and is eligible with over twenty-five years of relevant experienceCorrect
  3. CMr. Rao is appointed on the Selection Committee's recommendation; Ms. Iyer is appointed after consultation with the Chief Justice of India
  4. DMs. Iyer is ineligible because a Technical Member needs experience of at least thirty years

Explanation

Judicial Members of the Appellate Tribunal are appointed after consultation with the Chief Justice of India (s. 412(1)) and may be persons who are or have been High Court Judges (s. 411(2)). Technical Members are appointed on the Selection Committee's recommendation (s. 412(2)) and need proven ability and not less than twenty-five years of experience in the listed fields (s. 411(3)). Ms. Iyer's 26 years in investment and accountancy qualifies.

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