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CS Professional · Compliance Management, Audit and Due Diligence · Legal Framework Governing Company Secretaries

The Council of the Institute proposes to constitute a Regional Council to advise and assist it. Which statement matches section 23 of the Company Secretaries Act, 1980?

The Council may constitute Regional Councils when it considers fit, for one or more notified regional constituencies, to advise and assist it. The power is discretionary and advisory, not mandatory, and the constituencies are notified by the Central Government.

  1. ARegional Councils must be constituted for every regional constituency, and they take decisions binding on the Council
  2. BThe Council may constitute Regional Councils as and when it deems fit for one or more notified regional constituencies, to advise and assist itCorrect
  3. CThe Central Government constitutes Regional Councils and fixes their functions by order
  4. DRegional Councils may be constituted only for the whole of India and not for individual regions

Explanation

Section 23(1) lets the Council constitute Regional Councils as and when it deems fit, for one or more regional constituencies notified by the Central Government, to advise and assist it. The power is discretionary and the role advisory, so the mandatory, binding and Central Government options are wrong.

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