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CS Professional · Drafting, Pleadings and Appearances · Art of Advocacy and Appearances

The Company Liquidator of Sunrise Pharma Ltd. wants to engage a company secretary and an advocate to assist him in his duties. What must he do under the Companies Act, 2013, and what must the appointee do?

The Liquidator needs the Tribunal's sanction to appoint such professionals, and each appointee must immediately disclose any conflict of interest or lack of independence to the Tribunal in the prescribed form, as section 291 provides.

  1. AHe needs only the company's board approval, and the appointee need make no disclosure
  2. BHe needs Tribunal sanction, and each appointee must forthwith disclose any conflict of interest or lack of independence to the Tribunal in the prescribed formCorrect
  3. CHe needs Central Government sanction, and disclosure is required only after the winding up ends
  4. DHe needs no sanction, but only chartered accountants may be appointed

Explanation

Under section 291, the Liquidator may appoint chartered accountants, company secretaries, cost accountants, legal practitioners or other professionals with Tribunal sanction. The appointee must forthwith disclose any conflict of interest or lack of independence to the Tribunal in the prescribed form. Board or Central Government approval is not the requirement.

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